GOLD AND SILVER MANIPULATION
by Louis Cammarosano, Smaulgld Update April 16, 2016: Deutesche Bank Settles Gold Price Manipulation Case Update April 15, 2016: Deutsche Bank Settles Silver Price Manipulation Case
Actual Examples and Admissions of Gold and Silver Manipulation
In part one of our two part series on Gold and Silver Manipulation, we covered a long list of suspected silver and gold manipulations. We covered the circumstantial evidence of gold manipulation on the Comex and LBMA markets, discussed the probing of the London Gold and Silver Fixing Companies, reported on the JP Morgan silver fixing case and CFTC and U.K. Financial Conduct Authority investigations. All came up inconclusive with no clear manipulation found. Those outcomes do not mean, however, that manipulation of the price of gold and silver does not take place. Indeed, gold and silver price manipulation by governments and central banks is well documented and often necessary. Central economic planning is based on orchestrating outcomes. We have seen the insatiable desire of central banks to control/fix the price of money through the setting of interest rates. From 1934 to 1971, the price of gold was fixed at $35 an ounce by the United States Congress Gold Reserve Act of 1934 and by the international monetary Bretton Woods Agreements of 1944. Precisely because gold and silver have long histories as monetary metals – gold most recently as a backing to the U.S. dollar from 1944 until 1971 and silver as the basis for coinage in the western word until the mid 1960’s – central banks need to control the prices of both precious metals. When gold and silver were legally recognized as money, central banks needed to fix or substantially control their prices. Today that need is even more necessary as gold and silver are seen, not as anchors to government currencies, but rather as competition. As such, central banks will go to great pains to control their prices and to explain that gold and silver are NOT money. If gold and silver were only used as industrial metals or for jewelry, central banks would have little interest in them.
Is Gold Money? In this exchange with Congressman Ron Paul, former Federal Reserve Chairman Ben Bernanke denies gold is money but can’t give a clear reason that central banks hold it other than “tradition”: Central banks realize that there is no intrinsic value in U.S. dollars or any other fiat government issued currencies. Gold and silver remain a threat as they have intrinsic value. In order for the dollar or any fiat currency to remain widely used and valued, the intrinsic values of gold and silver must be undermined. This part two gives examples of how it has been done. We will examine concrete examples of silver and gold manipulation by United States Presidents, the U.S. Congress, the U.S. Federal Reserve, the U.S. Treasury, central banks and private banks (sometimes solely or often in conjunction with each other).