Gold/Silver Paper Market Whistleblower

RocketDogRocketDog Posts: 791 Silver ✭✭✭✭
In this video, Andrew Maguire talks about how he cracked the gold market manipulation process in 2009, and that nothing has been done about it yet. If you are not yet privy to information about how this is done, and why many feel this process keeps physical metals undervalued, then this is a good intro video for you. If you already know, you might feel better hearing it again, as your gold and silver remain stagnant...


  • GoldNRollGoldNRoll Posts: 214 Bronze ✭✭✭
    I don't like the expression "gold price manipulation".
    I mean in a free world, if I have the liberty to buy or sell a very large quantity of any good to influence it's price if I want and I can.

    I would rather call it "gold price fixing". And that's exactly what it is. The gold price is not something established by all the market players buying and selling real time. The gold price is established by negotiation twice a day by a small group of privileged banks that have their own agenda - most probably the agenda of central banks.

    I don't understand why gold miners, refiners and dealers play this game. One big gold dealer once told me: "We don't really care about the gold price variation over long term, we gain day by day from the spread" (selling with premium over spot, buying under spot).

    The problem is that if the gold price falls for a long time, people won't buy it anymore so the dealers won't have clients to gain from the spread. The refiners and miners go down with them. The gold industry lobbies the central banks to raise the price of gold (or at least, not to let it fall).
    On the other hand, if the gold price raises to much, people will hurry to buy and this may undermine the trust in paper money.
    I guess that the gold industry, central banks and bullion banks negotiate on a price to be fixed so that everyone is happy.

    Put it in another way: if the regulators don't make a compromise on the price going up, then miners, refiners and dealers could really establish a real global open market and that is unacceptable for central banks.
    If the miners, refiners and dealers try to establish an open market, the central banks would retaliate even by nationalizing the gold industry if necessary.
    So the current state may be a convenient compromise.
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