Cen­tral Bank Rig­ging Of Gold?

Los Angeles Times - - THE NATION - By: Brian C. Nepveux, Chief An­a­lyst

While Cen­tral Banks ad­mit to en­gag­ing in gold lease trans­ac­tions, they do not ad­mit to its pur­pose, which is to mod­er­ate rises in the price of gold, although the Fed did ad­mit dur­ing Con­gres­sional tes­ti­mony on de­riv­a­tives in 1998 that “Cen­tral banks stand ready to lease gold in in­creas­ing quan­ti­ties

should the price rise.” – Allen Greenspan

The pri­mary pur­pose for short-sell­ing fu­tures con­tracts on Comex is to pro­tect the dollar’s value from the grow­ing sup­ply of

dol­lars cre­ated by the Fed’s pol­icy of “Q.E.” This pro­gram of buy­ing trea­suries is caus­ing dras­tic in­fla­tion with an in­di­ca­tor such as gold to re­flect the wa­ter­ing down of the Dollar.

The Fed’s use of gold leas­ing to sup­ply gold to the mar­ket in

or­der to re­duce the rate of rise in the gold price has drained the

Fed’s gold hold­ings and is cre­at­ing a short­age in phys­i­cal gold. West­ern cen­tral banks have pushed frac­tional gold re­serve bank­ing to the point that they haven’t enough re­serves to cover with­drawals. The Re­serve Bank of In­dia re­ports that the ra­tio of pa­per claims to gold ex­ceed the amount of gold avail­able for de­liv­ery by 93 to 1. Large pur­chasers of gold, such as China, re­quire ac­tual de­liv­ery. In­vestors now de­mand phys­i­cal gold. If pa­per gold in­vestors choose to take de­liv­ery of phys­i­cal gold

in­stead of set­tle­ment in IOU’s only 1 con­tract out of 93 can be de­liv­ered. Cen­tral banks and the Comex sell “naked shorts” into the mar­ket to ar­ti­fi­cially drive gold prices down. This means no ac­tual gold ex­ists in th­ese trans­ac­tions which should be il­le­gal how­ever th­ese trad­ing laws could change when faith is gone in pa­per gold. “ How high could gold go up be­ing lever­aged 93:1? If there is a run on pa­per, how long will it take be­fore phys­i­cal gold is gone? ”

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