On Suppressing the Gold Price


NEW UNCOVERED INFORMATION: Why Central Banks Were Forced To Rig The Gold Market

… New information provides clear evidence that (starting in the 1960s) the Fed, Central Banks and the IMF were forced to RIG the gold market (Now, when I say “new information”, it pertains to new information and data that I dug up from older official documents.).  …

Most of us in the precious metals community understand that the Central banks dumped a lot of gold into the market during the 1960’s London Gold Pool to maintain the official gold price.

(Then) Nixon dropped the Gold-Dollar Peg in August 1971 …to keep U.S. gold from flowing overseas as the U.S. Government had been printing a great deal of paper money.  Thus, countries such as France were exchanging Dollars for real gold.  …  However, new uncovered gold supply and demand data suggests there was another FACTOR that forced even more dumping of official gold during the 1970’s. …

 

This next quote … shows just how bad the gold supply and demand situation was going to be at the end of the decade:

1971 Gold Demand 63 Moz 1980

… This was a BIG PROBLEM.  Why?  Because gold mine supply was also forecasted to decline to 38-41 Moz in 1980.  This would have resulted in a huge net deficit. …

So, not only did U.S. President Nixon stop the bleeding of gold flows out of the U.S. Treasury, but in addition, public demand for gold that decade was going to explode.

This just could not fly.  Which is why the Congress and the Subcommittee on International Exchange and Payments … were highly motivated to promote … the dumping of a massive amount of the yellow metal into the market. …

During the 1960’s Gold Pool it was more a physical market intervention as they dumped 78 Moz of (physical) gold to maintain the official gold price of $35 an ounce.  Then when Nixon dropped the Gold-Dollar Peg in 1971, these official institutions combined “Physical gold dumping”along with the “Creation of a Paper Gold Futures Market in 1975” to rig the gold market during the wild 1970 decade. …

I don’t have a lot of data on the paper futures market in this article (will be in future Paid Report) … (But) from the beginning of paper gold trading on the Global Exchanges, it increased from 84 Moz in 1975 to an astonishing 1,027 Moz (1.03 billion oz) in 1979.  The tremendous trading of paper gold contracts (later on including options) sucked in a massive amount of funds.  Thus, paper gold trading funneled a great deal of money away from physical gold and into worthless paper gold. …

The IMF did complete its final gold auction in May 1980. … If we include this amount with the sales of foreign gold at the Federal Reserve and other official gold sales, the amount of gold sold during the 1970 decade was quite an impressive amount… probably something north of 50 Moz. …

To continue rigging the gold market in the 1990’s and onwards, the West had to introduce “Gold Leasing” and more exotic “Gold Derivatives” to keep the gold price from going completely BONKERS.  Again, this has been done while the public remains completely in the dark.

In conclusion, the Fed and Central banks were in serious trouble in 1971.  Not only was the dropping of the Gold-Dollar Peg in 1971 a sign that things were about to get very interesting with the gold price, but the forecast of exploding gold demand would have resulted in a 25 Moz deficit by 1980.  This forced the Fed, IMF and Central banks to dump a massive amount of gold into the market (and then further dilute purchases of physical gold by creating paper, or fiat, gold contracts) to meet the insatiable demand. …

Since Nixon dropped the Dollar-Gold Peg in 1971, the amount of debt in the world has skyrocketed.  The Central Banks designed a two-tiered system to remove gold as a reserve asset:

  1. Dump physical gold into the market to suppress or maintain price.  Then add a Paper Futures Market to funnel funds away from a limited supply of physical gold and into an unlimited supply of paper gold contracts.
  2. Increase world debt to such massive levels, that interest rates had to fall towards zero.. or negative.  Thus creating a 30+ year artificial Bond Market Rally.  If interest rates rise… the entire system BLOWS UP.

While the ultimate revaluation of gold and silver has taken more time than most of us in the precious metals community anticipated, THAT DAY IS COMING. …

Today, most Americans and citizens around the world have no idea just how undervalued gold is.  No idea whatsoever.

Since the peak of the gold price in 1980, the Fed and Central Banks continued to dump physical gold into the markets at various times up until 2009.  However, “Official gold sales” turned into net “Official purchases” in 2010.  …

Check back for new articles and updates at the SRSrocco Report.

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About icliks

Biding my time in central ms ... yours too, if ur reading this.
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