All That Glitters: Is the Gold Market Rigged? | The Galactic Free Press

GFP Note: A recent article indicates that silver will form the final stake that brings down the "Banking Industry."

Exclusive: Mark Leibovit on how recent events will affect precious metals.

WND Commentary
by Mark Leibovit

 

In my VR Gold Letter, I have recently pointed out the “seasonal” tendency for a rally in July, even though there could also be risk of another sell-off into the fall before the traditional September-to-February bigger seasonal rally. Well, it appears we’re underway.

Interestingly, the confluence of potentially bullish regulatory/political events has helped confirm these positives, most notably the work of Ron Paul, the Barclays Libor scandal and the accusation that JP Morgan has been “manipulating” (suppressing) the silver market for several years. Bringing these events to light might now dramatically change the dynamics of the metals markets – allowing supply and demand, rather than illicit actions, to determine prices.

Market manipulation

One of the biggest issues for the gold and silver markets has been the consistent interference on the part of world governments, especially the U.S. government, in the silver and gold futures markets. Gold is so important that Western central banks – particularly the U.S. Treasury and its Exchange Stabilization Fund, the Federal Reserve and allied central banks – rig the gold market every day, even hour by hour.

Why do they do this? Because gold is a powerful competitive currency that, if allowed to function in a free market, determines the value of other currencies and influences interest rates and the value of government bonds.

So, although “conspiracy theorists” have argued for decades that the gold and silver markets have been manipulated by central governments, it is not conspiracy. It is fact.

GATA to the forefront

The work of Bill Murphy and Chris Powell at the Gold Anti-Trust Action Committee, or GATA, has been invaluable in seeking out the truth. To obtain proof of its allegations, GATA has sued central banks and particularly the U.S. Federal Reserve, against which in 2011 it won a Freedom of Information Act lawsuit in U.S. District Court for the District of Columbia. The lawsuit produced a written admission by a member of the Federal Reserve Board of Governors, Kevin M. Warsh, that the Fed has secret gold-swap arrangements with foreign banks and that the Fed cannot ever permit these gold-swap arrangements to become public. Interestingly, last December, soon after resigning from the Fed’s Board of Governors, Warsh wrote a piece in the Wall Street Journal complaining about the new central bank policy called “financial repression.” He asserted that government policymakers now are “finding it tempting to pursue ‘financial repression’ – suppressing market prices that they don’t like.”

GATA also has proven gold-market manipulation by examining trading data, most notably in a study by its board member and market analyst Adrian Douglas showing that, as GATA says, “the gold price during trading in the London market has gone down steadily for 10 years even as the worldwide gold price has gone up steadily in that time. That is, anyone buying gold on the opening of the London market and selling it on the close every day over the last decade would have lost a huge amount of money even as the gold price rose steadily around the world.

According to GATA:

“… [R]igging the gold market is part of a general scheme by which a secretive and unelected elite in the United States controls the value of all capital, labor, goods, and services in the world – controls the value of everything.

But the mainstream financial news media in the West refuse to examine the documentation of this scheme and to put critical questions to central banks. Indeed, the first rule of financial journalism in the West is that central banks cannot and must not be questioned. This is now changing. As central banks intervene more and more to defeat markets, this rule makes most Western financial journalism simply irrelevant. But the purpose of all this market rigging is to suppress not only the prices of gold but to suppress commodity prices generally. How about crude oil or copper? It is just the latest manifestation of the everlasting war of the highest levels of the financial class against the producing class, only this time the producing class hasn’t yet figured out what’s going on. Most tragically, much of the gold-mining industry itself doesn’t understand what is being done to it – doesn’t understand that it’s not just digging metal out of the ground, but minting money and competing with all other issuers of money and that this competition is far more cutthroat than imagined.

To read the rest of this story, visit http://www.wnd.com/2012/07/is-the-gold-market-rigged/

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