Central banks consider joining the LBMA. (So much for transparency.)
by Chris Powell, GATA Dear Friend of GATA and Gold: Central banks have expressed interest in joining the London Bullion Market Association, which pretty much runs the London gold market, according to a report by the LBMA’s chief executive officer in the May edition of its newsletter, The Alchemist. Summarizing developments with the association’s membership committee, LBMA Chief Executive Ruth Crowell writes: “The committee continues to review a growing number of membership applications, which demonstrates the growing relevancy and diversity of the association. Two new mining companies have joined the ranks of the association. The LBMA welcomes other producers to join and have a voice in the London market. Another demonstration of the diverse reach of the association is the recent interest expressed by some central banks.” Crowell’s report was called to GATA’s attention today by our consultant, gold researcher Ronan Manly. It appears on Page 24 of The Alchemist, which is posted in PDF format at GATA’s Internet site here: http://www.gata.org/files/LBMAAlchemist-May2005.pdf In a statement to the Bank of England’s Fair and Effective Market Review Committee in January — http://www.gata.org/node/15241 — Crowell wrote that “the role of the central banks in the bullion market may preclude ‘total’ transparency, at least at public level,” so presumably the more central banks are directly involved with the LBMA, the less transparent the London gold market will become. Will the LBMA and the central banks that join it even announce the new memberships? Would such an announcement, confirming the surreptitious involvement in the gold market by central banks, be reported by mainstream financial news organizations? Would any gold market analyst, financial journalist, or gold mining company executive wonder, aloud or just to himself, what central banks are doing in the gold market and what objectives they are pursuing? Would any of them try actually putting a question about it to a central bank? Or are central banks and their agent bullion banks supremely confident that all those people will obediently avert their gaze and that the rigging of the gold market will remain an open secret that simply cannot be discussed in polite company? All GATA can do is keep compiling and clamoring about the documentation of central bank rigging of the gold market and other markets — http://www.gata.org/taxonomy/term/21 — and note that the emperor wears no clothes. If you’re inclined to support GATA’s work, please visit: http://www.gata.org/node/16 CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc.