Central Bank Rigging Of Gold?
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?