by Chris Powell
[…] I’m here again this year to update you on the surreptitious manipulation of the gold market by central banks and to explain how this surreptitious manipulation now extends to all major markets around the world.
This is remarkable not in fact but only in degree.
For central banks long have rigged the gold market, usually suppressing gold prices to protect their own currencies and government bonds against a potentially competitive world reserve currency. Central banks used to do this market rigging in the open, through mechanisms like the London Gold Pool in the 1960s, but they lost too much of their gold reserves that way. Now they do their market rigging surreptitiously using derivatives and high-frequency trading, activities underwritten by the leasing and swapping of gold by central banks. In this way central banks have created a vast, imaginary supply of the monetary metal, a supply of “paper gold” for price suppression.