Gold & Silver Price Manipulation from the Top Down

November 12, 2013 at 10:31


The manipulation of gold prices, along with practically every other asset class, has perfectly transparent legal precedent. The precious metals political hot potato taboo has been strong enough to make it almost impossible for the mainstream to understand. And while it is perfectly plausible and even celebrated by the practitioners, the greatest threats to economic stability (LIBOR, bonds and interest rates, equities, electricity) are openly discussed facts. Obviously, history has demonstrated that these great unnatural “tinkerings” always end badly.

To summarize, the key points of a recent interview with GATA’s Chris Powell’s demonstrated how silver analyst Ted Bulter and GATA dovetail — and how it ends.

The ESF is basically the funding arm of the Treasury — as spelled out on their website.

By definition it means (and is confirmed by open admission) that they intervene across a broad range of asset classes.

The legal basis of the ESF is the Gold Reserve Act of 1934. As amended in the late 1970s, the Act provides in part that “the Department of the Treasury has a stabilization fund consistent with the obligations of the Government in the International Monetary Fund (IMF) on orderly exchange arrangements and an orderly system of exchange rates. The Secretary, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities.”

They use swaps and huge concentrated positions held by Fed member banks to intervene in the gold market.

The Fed’s member banks include the bullion banks, who obviously wield control of COMEX via concentrated positions or ‘constant’ market corners.

GATA has documented (modern) evidence, by the use of their FOMC Freedom of Information Request, that the fund has very broad legal authority to intervene anywhere.

The fund also works in conjunction with the Fed — again, as stated at the Treasury site — which more than implies market coordination and collusion.

With gold, they still have the ability to maintain that illusion.