Outrageous behaviour

For quite some time now, it has become apparent that governments, particularly the United States authorities, have manipulated the price of gold.

Inasmuch as it is a kind of barometer, politicians want to hide the effects of their policies.

As long ago as the 1960s, authorities tried to obscure the true situation. In 1960, in order to restrain the price of gold, the gold pool spent huge amounts to sell gold, but the attempt failed, and the price of gold was virtually unchanged, so the efforts were abandoned.

From 1933 to 1964 Washington prohibited private citizens from owning gold bullion. However, foreign nations wanted to convert their dollar holdings into gold. The U.S. was running a large deficit in its foreign trading accounts. As a result foreigners were draining the nation’s gold reserves. Consequently, in 1971 President Nixon ended the convertibility of United States dollars into gold.

In addition, the United States “twisted the arms” of foreign nations to sell their gold and invest in the U.S. dollar. Unfortunately, Canada was persuaded to sell just about our entire gold reserves and place the funds in U.S. currency.

Many nations were invited to send their gold reserves to the New York Federal Reserve Bank for safekeeping. Now Germany, among others, wants the gold returned. But the nation was told that it would take seven years to do so. Why? Clearly, the gold was loaned out and not available. It is doubtful that it will ever be returned, as over and over again that gold has been loaned out to many spectators.

Nowadays, the price of gold has been manipulated so that many times when prices were rising strongly, the U.S. has been interfering in the gold paper market and selling gold.

However, recently a maneuver has come to light confirming these shenanigans. Usually, when selling a sizable amount of gold, one should try to get the best execution price and not alert the buyers to the size of the sell order. Overnight just before 3am eastern, a block of 2,000 gold coin contracts slammed the price of gold on no news, sending the price lower by $10 per ounce. The Commodity Futures Trading Commission ignored the goings-on. That evening’s slam down was an effort to break the market.

Following the hit, the entire gold market was suspended for 20 seconds after a circuit breaker halted trading. The next day a colossal three million ounces of gold were sold, and no bids were available in the entire market. The price dropped $30 immediately. Clearly, this was an effort to destabilize the market and lower prices to accommodate some short sellers.

This morally undesirable action confirms what was suspected. The gold market is being manipulated outrageously.


Bruce Whitestone