Over the years, I’ve asked several skeptics of the idea that Central Banks and Governments, using the bullion banks as their agents, manipulate the gold price this question: The Big Banks have been convicted and fined numerous times for manipulating interest rate and currency markets. Is it realistically conceivable given this fact that they would leave the gold market alone? The question, of course, is rhetorical and I’ve yet to receive an answer.
The answer is obvious to anyone who has looked at the facts. I have written several articles with Paul Craig Roberts detailing how the manipulation is executed on the Comex and the motivation behind the manipulating the gold market. Remarkably, there are public notes of a meeting chaired by Henry Kissinger in 1974 that discusses the importance of removing gold completely from the monetary system which is conveniently ignored.
The following is a re-post of an article posted by GATA’s Chris Powell. Even if you have your had in the sand and refuse to believe that Central Banks and Governments manipulate the global gold market using paper gold derivatives, at least brush the sand out of your eyes and read this carefully:
How easy it would be for any major financial news organization or trade association to confirm, expose, and combat the rigging of the gold market by governments and central banks. Such an effort could start with the documentation, most of it from official sources, collected by GATA and compiled here: Taxonomy
Everything could be nailed down to the present moment by a few specific questions put to the key participants in the rigging. These questions already have been prepared and posed, just not publicized enough.
— Three months ago U.S. Rep. Alex X. Mooney, R-West Virginia, wrote to the secretary of the treasury and the chairman of the Federal Reserve asking what the U.S. government’s policy on gold is and whether it remains, as government records from years ago establish, to drive the monetary metal out of the world financial system. Mooney also asked whether the U.S. government, directly or through intermediaries, like the Bank for International Settlements, trades in gold and gold derivatives and what the purposes of any such transactions are. Mooney’s letter is posted at GATA’s internet site here: Mooney Letter
Mooney has received no response.
– Last November GATA put similar questions to the BIS. What, GATA asked, is the purpose of the gold swaps and derivatives purchased and sold by the bank and the purpose of the bank’s involvement in the gold market generally?
The bank replied promptly but only to say it would not answer the question: BIS Letter
— Five weeks ago your secretary/treasurer and GATA consultant Harvey Organ wrote to the comptroller of the currency in the Treasury Department, Joseph M. Otting, whose office regulates the banking industry, calling attention to the recent explosion in use of the emergency procedure of “exchange for physicals” to settle gold and silver contracts issued on the New York Commodities Exchange by government-regulated banks. The financial risks undertaken by the banks in these transactions, GATA wrote, apparently were not being reported to the comptroller.
GATA’s letter concluded: “Could you review this matter and let us know your conclusions?” The comptroller has not responded.
Please click here to read the rest – it’s worth the time spent: Unanswered Questions About Official Gold-Rigging