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XMFSinchiruna (26.59)

Unlike Big Banks and Bigger Governments, Gold Doesn't Lie



July 25, 2012 – Comments (2) | RELATED TICKERS: JPM , HSBC , GLD

"In a post-LIBOR world, it becomes very difficult for reasoned and well-informed individuals to argue that powerful bankers won't periodically lie, cheat, or deceive where they perceive an opportunity and a motive to do so. This was, in my view, the key takeaway from that still-emerging scandal."

"The most scandalous aspect of gold-price suppression, if ever all of the facts from this notoriously secretive corner of the financial universe ever come fully into the light, will be the revelation that widespread collusion between central banks and too-big-to-fail banks forms a necessary prerequisite for such manipulation to occur. Today's gold and silver markets are not what most casual observers might expect. The gold market is dominated by an obscenely leveraged trade in futures and derivative contracts that may represent 100 times the actual underlying physical supply!"

"This presents the opportunity for the so-called "bullion banks" to exert enormous influence through positions backed by only modest or even a hypothetical supply of the actual metal. In his 2009 report Pirates of the COMEX, GATA board member Adrian Douglas deduced from government data that JPMorgan Chase (NYSE: JPM ) and HSBC (NYSE: HBC ) held massive positions in precious-metal derivatives at the time, accounting for 85% or more of all such contracts held by banks. And here's some food for thought: HSBC serves as the custodian for gold held within the enormous SPDR Gold Trust (NYSE: GLD ) , and JPMorgan Chase is the custodian for the iShares Silver Trust (NYSE: SLV ) . Five of the six bullion banks, furthermore, have been implicated within the emerging LIBOR scandal."

2 Comments – Post Your Own

#1) On July 25, 2012 at 4:29 PM, XMFSinchiruna (26.59) wrote:

Dear Friend of GATA and Gold:

Interviewed by Lars Schall for Matterhorn Asset Management's GoldSwitzerland Internet site, former Assistant Treasury Secretary Paul Craig Roberts says the Federal Reserve is probably manipulating gold and silver prices to prevent them from further undermining the value of the dollar while the Fed does so itself with its policy of zero interest rates. The interview with Roberts is headlined "All Investment Avenues Are Rigged" and it's posted at GoldSwitzerland here:

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#2) On July 25, 2012 at 5:23 PM, SN3165 (< 20) wrote:

Brigus Gold  Appoints Daniel Racine as COO. Mr. Racine is a mining executive with over 25 years of industry experience, with 24 years at Agnico Eagle.  

 Very good!

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