Western central banks: Nowhere near as much gold as they claim?

Image by P199 / Wikimedia *

“… major news organizations avoid the gold market manipulation issue although it might seem to be a godsend for them — the Financial Times, The Wall Street Journal, The New York Times, Reuters, Bloomberg News, the Associated Press, etc. They seem reluctant to put to central banks any pointed questions about gold.” – Lars Schall, German freelance journalist

Germany is now reporting less than 500 tonnes of gold in situ within the confines of the Bank of England under the Thames river.”Harvey Organ


So just ask them: Western central banks have enormous secrets about gold

By Lars Schall
October 24, 2012

It’s strange what you encounter when you try to take a serious look at the gold policy of central banks and their agents, the bullion banks.

Some observers, including the Gold Anti-Trust Action Committee (GATA), estimate that Western central banks have on hand nowhere near as much gold as they claim. These observers suspect that much Western central bank gold has been sold or leased largely surreptitiously to restrain the gold price over the last two decades.

Here is the explanation provided to me in an interview by the Canadian financial analyst and fund manager Marshall Auerback when I asked: Do you think that the Western central banks and the International Monetary Fund really have in their vaults the gold they say they have?

Marshall Auerback: “In a strict accounting sense they might, but it might be irrelevant. I suspect that the central banks have not been selling much gold over the past few years since the inception of the Washington Agreement on Gold, but I think they have still been leasing considerable amounts into the gold market. From a flow standpoint, it’s irrelevant whether the gold is sold or lent, as it still appears as supply in the market.

“So the key question becomes: Can the leased gold be recovered by the central banks? The work of GATA and others such as Bob Landis and Reg Howe suggests that the gold cannot be recovered. In effect you have a ‘prison of the shorts’ situation, whereby the gold that has been lent out and melted down to become, say, part of some Indian bride’s dowry will not be coming back into the market.

“Ultimately, I think, the central banks will ratify this in an accounting sense by reclassifying the leased gold as sold, so from a stock standpoint, that will validate GATA’s argument that there is far less gold being held by the central banks than is commonly believed.”  (emphasis added) Complete article HERE.


Chris Powell: Gold and silver are crucial to the liberation of all markets

Remarks by Chris Powell
Gold Anti-Trust Action Committee Inc.
New Orleans Investment Conference
October 24, 2012

The first thing to understand when you’re investing in the resource sector is that all major markets are now manipulated, mostly surreptitiously, by governments. There are a few reasons for this explosion of manipulation but the big ones are that the world economy has grown terribly unstable in recent years (in large part because of smaller manipulations by governments) and because an international currency war has broken out.

The gold and silver markets are the most manipulated of all because they involve currencies that compete with government currencies and because gold is a primary determinant not just of the value of currencies but also of interest rates and the value of government bonds. The gold market particularly is the key to all other markets.

This market rigging isn’t farfetched or wild conspiracy theory stuff. For starters, in the United States it’s the law. In 1934 the United States enacted the Gold Reserve Act specifically to create the Exchange Stabilization Fund within the Treasury Department and authorize it to trade in gold and related financial instruments. As it has been amended, the Gold Reserve Act now allows the ESF to trade not just in gold but in any financial instruments and to do so entirely in secret, exempt from answering to Congress or anyone else. (emphasis added) Complete article HERE.

Related video:

Lars Schall interviewed by Max Keiser on “Germany´s gold reserves”– Oct 20, 2012

Related Article:

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