Articles & Blogs - Gold Commentary

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In Part I, I discussed how and why the manipulation of the gold (and silver) market occurred, and how the anti-gold cabal of Western bankers used the vast hoards of gold in Western central banks to ruthlessly dominate (and suppress) this market for decades. I pointed out that despite persuading several of the world's largest gold-miners to join this cabal (so that their gold in the ground could also be dumped onto the market) that the Manipulators have been rapidly expending their “ammunition”.

Indeed, as we approach the end of the second five-year gold sales-agreement among Western central banks, what was originally intended as a “ceiling” for annual gold sales by the Manipulators has become a quota – a target which the anti-gold cabal is trying and failing to meet. During this five-year term, the annual ceiling/quota is 500 tons per year. Yet, with only a month until the expiry of this agreement in September, Western central banks haven't even been able to scrounge-up 200 tons of gold to dump in this final year.

This brings us to the newest five-year agreement for gold sales by Western central banks (see “New Central Bank sales-agreement very gold-bullish”). In this recently announced deal, the new quota which the Manipulators will try to reach (and likely fail) is only 400 tons per year. Even more telling, this includes the pending sale of the IMF's 400 tons of gold – despite the fact that the IMF is obviously not a “European central bank”. Without being padded with IMF gold, the new sales agreement would represent a greater than 1/3 decline in sales by these central banks.

Clearly, the anti-gold cabal is not simply running low of gold, but as with all conspiracies which approach failure, the unity of this cabal is unraveling. You don't have to be a psychic to be able to guess at the conversations now taking place among these bankers.

“We need to dump more gold to stop it from exploding above $1000.”

“Agreed – so how about selling a few hundred tons of your gold?”

“Well, I was actually thinking it was your turn to sell...”

No one really knows how much (or how little) gold still remains in the hands of the Manipulators. For example, the United States claims to have the world's largest stockpile of gold. The problem is that for over 50 years it has refused to allow any independent audit of these supposed reserves (see “GATA seeks an audit of MYTHICAL Fort Knox gold”).

A stockpile of gold is not like some secret, weapons facility, where simply allowing someone to see it could cause some sort of “threat to national security”. If the U.S. hoard of gold actually existed, it is in the nature of Americans to want to show it off to anyone and everyone in the world. The obvious conclusion is that only a tiny fraction of this gold remains (if any, at all).

In fact, the U.S. no longer even describes the supposed hoard of gold at Fort Knox as “gold reserves”, but instead it calls its holdings gold reserves and gold swaps. In other words, we have no idea of how much of this one-time hoard has been “loaned” to bullion-banks who cannot possibly replace that gold, and how much of the gold stored at Fort Knox officially belongs to other governments. All we know is that the truth would be extremely harmful to the Manipulators – which is why the actual amount of U.S. gold still held at Fort Knox which actually belongs to the U.S. is a closely-guarded state secret.

It is precisely at the time that Western sales of gold are rapidly falling toward zero that central banks in Asia, the Middle East, South America, and even Europe have suddenly started buying gold – while ridding themselves of their soon-to-be-worthless U.S. dollars, in the process.

However, among the governments buying gold, two governments stand out – for totally different reasons. As has been widely publicized, China's gold reserves have been rapidly increasing: the largest/fastest accumulation of gold by any government in many decades (see “China now has 5^th largest gold reserves”). At least as stunning as this rapid accumulation is the fact that China has done this while buying very little gold on the open market.