Rigging the gold market

Earlier this month, Daily Pickings speculated on the shortfall in physical gold stocks held in the US, on behalf of countries like Germany which has been looking to repatriate its gold reserves. If there is a shortfall of gold at the US Federal Reserve, where has it gone?

Naked Gold Shorts: The Inside Story of Gold Price Manipulation By Dr. Paul Craig Roberts and David Kranzler

The magnitude of manipulation in various markets such as the fixing of LIBOR, foreign exchange, energy and food prices suggests all markets are now rigged, often with the connivance of central banks. The divergence between the physical gold market and paper representations of gold such as exchange traded funds (ETFs) and gold trusts is such that at some point the "chickens will come home to roost", ie. holders of paper gold receipts will demand access to the physical gold to which they are entitled. As in a classic bank run in the fractional reserve banking system, there is nowhere near enough gold to satisfy all of the claims. Could this be the next domino to fall, leading to financial collapse?

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