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