Gold Market Manipulation Update - Chris Powell

Photo: Gold Market Manipulation Update - Chris Powell

00:00:09 During the last year, gold and silver market manipulation has burst into the open and become undeniable. Even some mainstream financial news organizations have had to report it gradually and only briefly. The gold and silver mining industry itself keeps running away from it. Fortunately, this conference allows it to be discussed anyway.


00:00:32 The biggest development gold and silver market manipulation in the last year has been Deutsche Banks admission that it's traders can aspired with traders from other big investment banks to suppress gold and silver futures prices. This admission by Deutsche Bank came as part of it's response to class action and a trust lawsuits brought against stood and it's co-conspirators in U.S. district court New York. Deutsche Bank has provided the plaintiffs for transcripts of electronic messages between the traders showing them arrange and to coordinate their trades to smash gold and silver prices down. The bank has agree to pay nearly a $100 million to the plaintiffs to settle the cases.

00:01:12 The bank also has agreed to provide more evidence against the other conspiring banks. The U.S. Justice Department is seeking to intervene the case to stop the plaintiffs from gathering more evidence, supposedly so he department can conduct it's own investigation as if the two investigation could not proceed concurrently. This action by the Justice Department is suspicious because for many years, the U.S. come out of the future's trading commission announced repeatedly that it has investigated compliance of manipulation of the silver market and it found no actionable evidence, closing it's investigation in 2013.

00:01:52 It seems that the U.S. Government just wants to stop exposure of gold and silver market rigging perhaps because the U.S. Government itself and other governments have been masterminding it. As GATTA has documented extensively over the years that our internet site Much more evidence of government involvement in gold and silver price suppression has come out during the year.

00:02:16 According to it's own recent reports, the bank for international settlements, the Central Bank of the central banks and their gold broker reentered the gold swap business in a big way after having withdrawn from it for a time. Gold swaps allow central banks and their agent investment banks to move gold and gold derivatives around the world so that metal can be applied for price suppression where gold demand most threatens to get out of control. An increase in gold swapping by the BIS indicates greater strain in the gold market and more danger to government currencies from gold used as a competitive reserve currency.

00:02:54 Another indicator or stress in the gold market in the last years has come from the New York commodities exchange to COMEX. For many years, the COMEX has been almost entirely a paper market for gold with very little metal actually taken out of it. In recent mines gold off take on the COMEX has exploded. Also in the last year, the Austrian and Netherlands central banks refuse request from gold researcher, Kuis Johnson who writes for BullionStar in Singapore to disclosed list of the gold bars and their natural reserves. Such disclosures might allow researches like Johnson to ascertain how much of the gold and National Reserves has been surreptitiously list of swap and put into the market for price suppression. But a few months ago, Mexico Central Bank under pressure from financial journalist, Keir Mobarba, and Mexico's National Government Auditors did disclose it's gold bar list. The list showed that much of Mexico's gold reserves is held in an unallocated account the Bank of England. That is much of Mexico's gold has list to swap out which is exactly what the Austrian and Netherlands Central Banks and all these central banks don’t want the world to know about their own reserves.

00:04:11 The International Monetary Fund is been touting the new transparency of it's operations, but last September, gold researcher Ronan Manly who also writes for BullionStar in Singapore asked to see the records of the IMF's gold transactions and the agency refused him. The IMF's separacy about transparency was new but it's refusal to disclose it's gold transactions with the same old thing. For as got along as noted, the secret March 1999 report to the IMF's Board of Directors by it's research obtained by GATTA and published in 2012 confirmed that Central Banks can seal their gold transactions to facilitate the surreptitious interventions in the gold and currency markets. That is to conceal their market rigging. The secret march 1999 IMF's staff report is posted at GATTA's internet site.

00:05:07 Last July, a study by Derk Borh, professor of accounting and finance at the University of Western Australia in Perth concluded that Central Banks have been rigging the gold market by lending gold just as GATTA has long maintained.

00:05:23 Of course the gold lending is a primary mechanism of price controlled by the central banks was admitted officially by Federal Reserve Chairman Alan Greenspan in his testimony of Congress in July 1998. Greenspan said, "Nor can private counterpart is restrict supplies of gold and other commodity whose derivatives are often traded over the counter whereas central banks stand ready to least gold and increasing quantities should the price rise." That is Greenspan told Congress not to worry about the gold price because central banks had it under control with surreptitious leasing of their gold reserves.

00:06:05 In January this year, cable from the U.S. Embassy in London to the State Department of Washington was discovered by the TF Metals Report and the secret U.S. Government archives obtained by WikiLeaks. The cable sent in December 1974 shows that the U.S. government had just sought and receive insurances from the London Bullion Banks that the gold future's market that was about to open in the United States would create so much price volatility that ordinary investors would be scared away from gold.

00:06:35 Of course the Bullion banks some of which are formally agents of the U.S. Treasury Department, primary dealers and U.S. Treasury securities were to become primary traders in that gold future's markets and themselves primary creators of that frightening volatility. During the last year, the Indian Government has urge Indians to convert their gold savings in the paper financial instruments to paperize their gold. Reportedly and make up more useful to the country, the mere individuals savings.

00:07:08 The Indian Government scheme has failed spectacularly. A few weeks ago, writers reported that the governments program to issue interest baring securities in exchange for real metal had drawn out only seven of the estimated 24,000 tons of metal under private and temple ownership in India. The Indian people's attachment to gold is money and wealth seems as firm as their government's desire to impoverish them suppressing gold's price is measured by government currencies. India is a developing country but imagine who wealthy it would be if central banks and Governments including India's own government stop trying to suppress the measure of the money that Indian's most want to use.

00:07:53 From the documentation, GATTA has compiled that explained the governments in central banks are constantly operating the gold market surreptitiously to defend their currencies and to control interest rates. This stories free markets everywhere since currencies and interest rates are measures of value. This month gold researcher and GATTA consultant Ronan Manly whom I've already mentioned discovered in the archives the Bank of England memorandum showing that Western Central Banks including Federal Reserve Chaiman Paul Volcker himself can inspire the length in 1979 and 1980 to create a mechanism like the London Gold pull of the 1960s to control the gold price.

00:08:35 This conspiracy, centered down the bank for multinational settlements was all the more significant for occurring long after central banks officially had demonitized gold completely. That said, no formal policy reason to intervene in the gold market anymore. The memorandums at the Bank of England show the Central Bankers felt that first, they needed to keep intervening secretly because the gold price is a measure of inflation and influences, commodity prices and second, that Saudi Arabia would not continue producing oil at a low price unless it could also obtain gold, the great inflation hedge at a low price. The deal was cheap oil for cheap gold. There is evidence that as a result of this conspiracy a new sort of gold pool was created at the BIS in the 1980's. The annual report of the BIS acknowledged that it is the gold broker for it's members central banks not just swapping gold but constantly purchasing and selling gold and gold derivatives in secret.

00:09:43 Then a PowerPoint Presentation to potential new member central banks in 2008, the BIS even advertised that it's services include secret interventions in the gold market. Lately, Central Banks have even been caught on video confirming these surreptitious interventions against gold. Here is Peter Mooslechner, Executive Director of Austria Central Bank inadvertently confessing during an interview with KitCo's Daniella Camboni at the London Bullion Market Association meeting in Vienna in October 20015.

00:10:15 Rich, can you play the Mooslechner video.

00:10:15 Daniella Camboni : You're saying it depends on the size of the Central Bank, but I guess I should ask then, well what role do you feel it should be playing?

00:10:26 Peter Mooslechner: I think for small countries, it's more or less prefer all in the anthem. It's quite different I think for Central Banks in Asia for example where they're increasing the reserves a lot and they are much more active in using their reserves and trading in the market and intervening into the market. This is quite a lot from the starting point and the situation you are in.

00:10:48 Chris Powell: Mooslechner said, Asian Central Banks are "intervening" in the gold market. Of course no such interventions have ever been announced. Unfortunately, Camboni did not press Mooslechner about this. When other journalist contacted the Austrian Central Bank in the hope of following up with Mooslechner about his comment to KitCo, the bank refused to make him available. Here is William Dudley, President of the Federal Reserve Bank of New York taking questions after his presentation at the Virginia Military Institute in March last year.

00:11:22 First Dudley is asked by Agada supporter in the audience where Smith about the German Bundesbank repatriation of gold reserves from the New York Feds vault and other Central Bank vaults. Dudley answers the German repatriation question in detail. Then Dudley is asked by Smith whether the Federal Reserve is involved with gold swaps. Dudley replies that he doesn’t want to talk about "individual customer kind of transactions" even though he had just talked at length about the Fed individual customer transaction with the Bundesbank.

00:11:55 Rich, could you play the Dudley video.

00:12:00 William Dudley: We hold a lot of gold at New York Fed and it's almost all gold of foreign countries. A lot of the gold got there during the two World War where people want a safe place for their gold. The reality is, if countries want their gold back, we're absolutely to sell it them. If there's any delay in the gold going back to Germany because something on their end I would think. I'm not aware of any problems in getting their gold back.

00:12:27 They've asked for their gold back not just from the U.S. but from a few other countries. There were some I think political issue in Germany about whether the gold was really there. They're someone who wants to make sure that the money that they have under the mattress is still there, wanted to check on their gold. We're absolutely completely comfortable with that.

00:12:47 Any country that doesn’t want to hold it's gold at the New York Reserve, we're very happy to make arrangements for that country to take their gold home. We have absolutely no skin in the game. It's completely to those countries where they want to hold their gold.

00:13:02 Chris Powell: Smith's second question to Dudley did not ask him about individual customer transactions. Smith's ask Dudley only the general question. The question got itself put the Fed in 2009. Is the Fed involved with gold swaps?



00:14:19 Thanks to God as Freedom of Information litigation against the Fed and U.S. District Court for the District of Columbia in 2009, we obtained the answer to the gold swaps question from a member of the Fed's Board of Governors, Kevin M. Warsh handling GATTA's formal request for information on gold swaps. Warsh replied in writing to GATTA's Lawyer that the posses and refuses to disclose "information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System."

00:14:47 Gold swap information Warsh explained "is not the type of information that is customarily disclosed to the public." Can any one wonder why this information is concealed? Has the secret IMF staff report of March 1999 says it is concealed to facilitate secret market interventions by governments and central banks. Perhaps most remarkably in January this year, a major gold mining company executive and entrepreneur acknowledge on video that he believes the governments are rigging the gold market.

00:15:26 Here's is Canadian Billionaire Frank Giustra, a confidant of former President Bill Clinton being interviewed by Money Manager Marin Katusa at the Vancouver Resource Investment Conference in January. Katusa asked Giustra why the gold price doesn’t match the political and financial turmoil in the world. Rich, could you play the Giustra video.

00:15:47 Frank Giustra: Or worse.

00:15:48 Marin Katusa: Then why is gold, like if you pulled out a newspaper and saw everything that’s going on and Trump is President, you would think I'm in the Twilight Zone and you would say gold has to be $5,000 an ounce. It's not. Why is it not?

00:15:59 Frank Giustra: Well I think that and again, I'm not into conspiracy theories. I think gold is managed. I think the west specifically the United States goes out of it's way to down play the value of gold from a historical perspective. I think that that they've done a very good job in the Wall Street, the banking system, the government. Every government wants to own gold. They don’t want their citizens to own gold because that undermines the confidence in the real economy.

00:16:30 In a situation where you have such frugality in the system, the worse thing that any government would want to see is a spike in the price of gold.

00:16:38 Chris Powell: Gold price is lower than it should be Giustra said because governments have managed it. This raises questions that Katusa unfortunately failed to put to Giustra. First, if governments are suppressing the gold price why should any one invest in gold mining companies? Second, if governments are suppressing the gold price and you're an executive of and big investor in gold mining companies, are you going to try to do anything about it? Are you just going to sit there and quietly accept it?

00:17:09 Suppression of the gold price supports government issued currencies, help suppress all commodity prices and thereby destroys markets every where and expropriates the developing world. Gold price suppression thereby constitutes the primary mechanism of imperialism today. A mechanism more effective than armies since it is surreptitious and not generally understood. I would put two questions to all of you here since you're all involved in the commodity business one way or another.

00:17:37 Can you at least acknowledge as Giustra finally has done and I sent him all the documents of this like eight or nine years ago. He just couldn’t get into it until that the governments of developed countries are waging war not only against your businesses but against the developing world. If you can acknowledge this, then will you try to do anything about it. If you would like to try to do something about it, GATA can make some suggestions and provide more information.


00:18:40 Thanks for your kind attention.