Rising Gold Price Could Set Off Derivative Nightmare-Bill Murphy

by Greg Hunter, USA Watchdog Bill Murphy, Chairman of GATA (Gold Anti-Trust Action Committee), says precious metal prices have been relentlessly rigged by central banks and governments. Murphy contends, “If gold were to just to have kept pace with inflation, forget all the QE, it would be double what it is today. That’s how artificially low the price of gold is today, and also silver. Once they lose control of silver, it will go from $22 to $100 per ounce very fast.” Murphy claims that one reason precious metal prices are suppressed is central banks are afraid of what Murphy calls “a derivative nightmare” touched off by a rising gold and silver prices. Murphy explains, “We saw some of this before in 2008. There is counter-party risk all over the place, and it could set off like a nuclear reaction where there is one default after another. Derivatives have exploded to $250 trillion, or just pick a number. They don’t know what the outcome could be if they start getting this kind of reaction. So, they are maniacal in trying to keep the gold and silver prices in line.” Murphy goes on to point out, “Silver is the only market that in which the authorities have not found wrongdoing in a market they have been investigating–the only one after a five year investigation. It is bizarre how that could happen. All this evidence we have collected is like a murder trial. If you were sitting on a jury . . . and looked at all the evidence, you would say guilty beyond a reasonable doubt. People don’t want to go there because we (GATA) are taking on all the money and power in the world.” Continue Reading>>>

Sharing is caring!