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04/05/18 1:01 AM

#116 RE: ernie44 #112

Chris Powell: Gold market manipulation update, April 2018 -

GATA consultant Robert Lambourne, who seems to be the only analyst outside government who studies the gold market interventions of the BIS, notes that footnotes in the BIS' monthly reports show that the bank's gold, gold swap, and gold derivative positions exploded from zero in March 2016 to 438 tonnes in March 2017 to 525 tonnes last month:

Slide 2 -- BIS / Notes to the financial statements

This page is taken from the BIS annual report issued in June, covering the year ending March 31, 2017. It acknowledges 438 tonnes of gold swaps.

Slide 3 -- BIS / Statement of account

This page, from the BIS' October 2017 statement of account, shows that the BIS' gold loans rose substantially since March last year.

What exactly is the BIS doing in the gold market and for whom?

In November I brought Lambourne's analysis to the attention of the BIS press office and asked if his analysis was correct and if the bank could explain exactly what it was doing in the gold market and for whom. The BIS press office replied:

"We do not comment on specific accounts and holdings of central banks or of the BIS. Please see our latest annual report for details on gold. Further information can be gleaned from central banks directly."

But the BIS' annual reports provide no more substantial information about its activity in the gold market than its monthly reports do. As for obtaining information about gold market activity from BIS member central banks, they are no more forthcoming.

A few years ago GATA sued the Federal Reserve in U.S. District Court in Washington for access to its gold market records. We received very little access, since the court ruled that nearly all the Fed's gold records are exempt from disclosure. Indeed, the most notable information we got by suing the Fed was the possibly inadvertent admission in writing by a member of the Fed's Board of Governors, Kevin M. Warsh, that the Fed has gold swap arrangements with foreign banks and will never disclose them.

Slide 4 -- Warsh photo and letter

If the swapping and leasing of gold by central banks is ordinary and innocent activity, why won't central banks disclose and explain it?

The answer to that question was given by the secret March 1999 report of the staff of the International Monetary Fund, which acknowledged that central banks conceal their gold swaps and leases to facilitate their secret interventions in the gold and currency markets:

Slide 5 -- Secret IMF report

* * *

The second biggest development in the gold price suppression scheme since we last gathered here involves the New York Commodities Exchange

Slide 6 -- NYMEX/COMEX building

-- where, GATA consultant Harvey Organ reports, thousands of gold futures contracts that have been called for delivery have been moved off the exchange in private transactions called "exchange for physicals," or EFPs.

One implication of this development is that there isn't enough gold in Comex warehouses to cover futures deliveries sought in New York and that deliveries have to be moved to London, where transactions are more easily concealed by mechanisms controlled by the London Bullion Market Association, or where long contract holders seeking delivery can be paid privately to postpone delivery.

There may be other explanations for this development, but it is recent and signifies that something big has changed about the gold market in the last year.

* * *

Perhaps not so coincidentally, as gold researcher Ronan Manly of Bullion Star in Singapore disclosed the other day, on April 1 the London Bullion Market Association --

Slide 7 -- LBMA building

-- will begin delaying its daily gold and silver auction price reports. Recently the auction price reports have been issued 30 minutes after the conclusion of the auctions. As of April 1 the auction price reports will be delayed 14 hours. The LBMA has provided no explanation for this delay, but of course the longer the reports are delayed, the more opportunity there will be to adjust or tamper with them.

Further, Manly discloses, the LBMA has postponed for another year its plan to start reporting individual trades of gold and silver. If something nefarious is going on with those "exchange for physicals" by which Comex futures contracts appear to be transferred to London, the LBMA's reporting of individual trades might reveal it. Now there will be no reporting by the LBMA of individual gold and silver trades in London for at least another year:

* * *

In January this year U.S. authorities charged three foreign banks and eight individuals in "spoofing" of the gold and silver futures markets:

Slide 8 -- Reuters story on spoofing

* * *

Also in January this year GATA disclosed the discounts that are being given by CME Group futures exchanges to governments and central banks for secretly trading gold and silver futures contracts. It is not widely understood that governments and central banks are secretly trading all futures contracts on U.S. exchanges, for mainstream financial news organizations refuse to report secret interventions in markets by governments:

Slide 9 -- CME Group explainer

* * *

But maybe all you really need to know about gold price suppression could have been surmised from a story on the front page of The Wall Street Journal on August 10 last year:

Slide 10 -- Wall Street Journal front page

In that story the newspaper quoted four experts on the gold market, all of them associates of the Gold Anti-Trust Action Committee and all of them introduced to the newspaper's reporter by me.

Slide 11 -- Close-up of Wall Street Journal story

Those four experts -- gold researcher Ronan Manly, Sprott Asset Management's John Embry, GoldMoney founder James Turk, and futures market analyst James McShirley -- accused the Federal Reserve of being involved with the suppression of the gold price through the surreptitious lending and swapping of central bank gold reserves.

The Wall Street Journal story was a triumph for GATA, even though the Journal declined to mention GATA by name. (The reporter told GATA Chairman Bill Murphy that the newspaper just ran out of space.)

But the story would have been a much greater triumph for us -- indeed, it would have been a triumph for free markets -- if the newspaper had not decided, in reporting these complaints about surreptitious government intervention in the gold market, to violate the first rule of journalism. That's the rule about getting and reporting both sides of a story.

The Journal reported: "Some gold bugs -- investors bullish on the yellow metal -- think the Fed secretly lends it out to suppress prices, partly to protect the dollar's value. In theory the Fed can feed gold into the market through swaps with other countries."

So where were the Journal's questions about this for the Fed and the U.S. Treasury Department? Are the Fed and the Treasury Department involved in keeping the gold price down through surreptitious interventions, or are they not involved?

But the Journal never asked such questions, even though for a year and a half, as I provided the Journal's reporter with the documents of these interventions, I repeatedly pressed her to put the questions to the Fed and Treasury. I even provided the Journal's reporter with a video showing New York Federal Reserve Bank President William Dudley refusing to answer a question about gold swaps during his appearance at the Virginia Military Institute on March 31, 2016.

Slide 12 -- Still photo from Dudley video

Can we play that video now?

The Dudley video can be viewed here:

Note the inconsistency in Dudley's response. First he talks at length about the German Bundesbank's transactions to repatriate its gold from the New York Fed. Then, asked if the Fed is involved with gold swaps, Dudley says he can't comment on "individual customer kind of transactions." But he had just discussed an individual customer's transactions with the Fed at great length -- Germany's -- and the second question, about gold swaps, was not about individual customer transactions at all but simply whether the Fed was in the gold swap business.

Ordinarily news organizations are most interested in questions that high government officials refuse to answer. But mainstream financial news reporters are not interested in questions about secret government interventions in the gold market and secret interventions in markets generally. No, such questions are too sensitive, apparently considered threats to national security.

The best that mainstream financial news organizations can do is just to acknowledge the questions sometimes. Mainstream financial news organizations can never pursue the answers, no matter how easy it would be to do so.

Unfortunately most gold market analysts themselves will not pursue these questions either -- at least not yet. GATA will continue working on them.

Will the gold industry itself ever pursue these questions? Will the gold industry ever stand up for itself?

If not, why should anyone invest in an industry that doesn't care about the suppression of the price of its product?

Slide 13 -- Contact and thanks

The documents I have cited today are all posted at GATA's internet site,, most of them in the "documentation" section:

If you have any trouble locating them or have any questions about GATA's work, I'll be glad to hear from you at

Thanks for your kind attention.

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:


Gold Anti-Trust Action Committee
7 Villa Louisa Road
Manchester, Connecticut
06043-7541 USA

Recommended Internet sites for daily monitoring of gold and precious metals news and analysis.

Free sites: (Korelin Business Report -- audio) (in Spanish) (in English) (in Spanish)

Subscription sites:

Eagle Ranch discussion site:

Ted Butler silver commentary archive:

Coin and precious metals dealers who have supported GATA and been recommended by our supporters:

Anglo Far-East Bullion Co.
Level 23, Monticello, Anastasio Ruiz N
Panama City, Panama
Contact: Alex Stanczyk
9-11 Allee de l'Arche
Tour Ernst & Young
92671 Courbevoie
Tel: 01-80-88-48-80
Fax: 01-80-88-48-89
Contact: Jean-Franois Faure, President

Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112

BMG Group Inc.
280-60 Renfrew Drive
Markham, Ontario L3R 0E1

BullionStar Pte. Ltd.
45 New Bridge Road
059398 Singapore

5 Sager Drive
Rogers, Arkansas 72756
Contact: Ron Maines, Principal

CMI Gold & Silver
3800 N. Central Ave.
11th Floor
Phoenix, Arizona 85012
Bill Haynes, President

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
Don Stott, Proprietor

El Dorado Discount Gold
13014 N. Dale Mabry Highway
Suite 133
Tampa, Florida 33618
Contact: Steve Forehand

Fisher Precious Metals
Suite 210, 2151 West Hillsboro Blvd.
Deerfield Beach, Florida 33442
Contact: Lynn Fisher, Vice President

Gainesville Coins
17860 North U.S. Highway 41
Lutz, Florida 33549
David Kim, CFA, Proprietor
120 The Strand
GZR1027 Gzira, Malta
Proprietor: Fabrice Drouin Ristori

Gold & Silver Inc.
429 Santa Monica Blvd.
Santa Monica, California 90401

14 Fitzwilliam Square
Dublin 2, Ireland
+353 (0)1-632-5010
... and ...
No. 1 Cornhill
London EC3V 3ND, England
+44 (0)203-086-9200

Net Transactions Ltd.
1st Floor
32 Commercial St.
St Helier, Jersey JE2 3RU
British Channel Islands (UK)
Tel: +44-1534-633-933

Gold Silver Group
300 Corporate Pointe
Suite 320
Culver City, California 90230
David Weishaar, Senior Account Executive
Tel: 310-988-4508 (direct)
Toll-free: 844-763-4046

Matterhorn Asset Management AG
Bahnhofstrasse 28a
Tel: +41 44 213 62 45

Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889

Jaxville Gold and Silver Trading Co.
4901-48 St.
Parkland Square, Lower Mall
Red Deer, Alberta, Canada
Jack Fortin, Owner and Operator

Jaggards Pty Ltd. (Established 1963)
Bullion and Rare Coin Dealers
Level 8, 74 Pitt St.
Sydney, NSW, Australia
contact: Robert or Yen
at +61 2 9230 0886

Liberty Coin Service
Bank of America Building
Frandor Shopping Center
300 Frandor Ave.
Lansing, Michigan 48912
Contact: Allan Beegle or Tom Coulson
800-933-4720 or 517-351-4720
41A Route des Jeunes
1227 Geneva, Switzerland
+41 (0) 225 180 200
Fax: +41 (0) 225 180 199
Plaza de Carlos Trias Bertran 4, 2
28020 Madrid, Spain
Fax: +34-911-86-80-91

MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Michael Riedel, Proprietor

Miles Franklin Ltd.
801 Twelve Oaks Center Drive
Suite 834
Wayzata, MN 55391
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Missouri Coin Co.
11742 Manchester Road
St. Louis, Missouri 63131-4614

Money Metals Exchange
Box 2599
Eagle, Idaho 83616

Pacific Coin Exchange
300 Carlsbad Village Drive, Suite 207
Carlsbad, California 92008
Proprietor: Phil Onori

Precious Metals International, Ltd.
20 Genesis Place, DMS House, Ground Floor
George Town, Grand Cayman, KY1-1102
Cayman Islands
Toll-free: +1-866-764-2878
Local: +1-345-749-8305

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877

Royal Crown Precious Metals Ltd.
Suite 1500, HSBC Building
885 West Georgia St.
Vancouver, British Columbia V6C 3E8
Andreas Runge, President
Toll-free: 866-769-2521

Scottsdale Bullion and Coin
14500 Northsight Blvd.
Suite 204
Scottsdale, Arizona 85260
Contact: Tim Murphy
602-365-0163, toll-free: 888-812-9892

Scottsdale Silver & Gold
20701 North Scottsdale Road
Suite 107-266
Scottsdale, Arizona 85255
1-888-SIL-BARZ or 1-888-745-2279

SD Bullion
8000 Yankee Road
Ottawa Lake, Michigan 49267
Contact: James Anderson, Tyler Wall

Sheldon's Finest Coins
P.O. Box 194
30 Noelle Court
Lincoln Park, New Jersey 07035-2256
Ed Sheldon CPA, Proprietor

Silver Gold Bull Inc.
4819 45th St. / Box 2612
Rocky Mountain House, Alberta T4T 1L6
877-646-5303 or 877-646-5304
Fax: 403-845-5511

Silver Trading Co.
445 Montgomery St.
PO Box 876
Shreveport, Louisiana 71107
Larry LaBorde, Proprietor

SprottMoney Ltd.
Royal Bank South Tower
200 Bay St.
Suite 2750, P.O. Box 90
Toronto, Ontario M5J 2J2
or toll-free 888-861-0775

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
Dean Heskin, CEO

The Moneychanger
Box 178
Westpoint, Tennessee 38486
Franklin Sanders, Proprietor
1-888-218-9226, 931-766-6066

The Real Asset Co. Ltd.
2nd Floor, 8-9 Talbot Court
London, England EC3V 0BP
United Kingdom

True Metals Group
728 West Ave., Suite 1100
Cocoa, Florida 32927
Daniel and Karina Ward, Owners

Box 460009
Denver, Colorado 80246-0009
Michael Kosares, Proprietor

Worldwide Precious Metals (Canada) Ltd.
Suite 1108-1030 West Georgia St.
Vancouver, British Columbia, V6E 2Y3
President: John P. Downes
Toll-free: 1-866-623-2002
Local 778-945-2002

God Bless America