What is Gold-fixing, and Is the Gold Price Manipulated?
What is Gold-fixing, and Is the Gold Price Manipulated?
For decades, it has been an open secret on Wall Street and around the financial world that the price of gold has been subject to a near permanent and artificial (yet legalized) short imposed by the major bullion and central banks of the world, including the Bank of International Settlements, which is effectively “the central banks’ central bank.”
When nearly every one of the thousands of daily trades on the COMEX market is a gold “buy,” for example, one would naturally assume that such natural demand would consistently and naturally keep the gold price high and rising.
However, when just 5 to 8 individual, yet highly levered and powerful, bullion banks can run daily short contracts in the derivatives market at a greater volume than the natural buyers of gold, this un-natural yet deliberately price-fixed system, can keep gold prices forced lower than natural supply and demand would otherwise dictate.
The effort by bullion and central banks to keep a price pressure (i.e., “boot to the neck”) on gold stems from the simple fact that if gold were left to be fairly priced in the open market, its extreme valuation would make an immediate and absolute mockery of what extreme monetary policies (i.e., money printing) has done to fiat currencies like the USD, euro, yuan, yen etc.
Thus, gold is deliberately and legally “fixed” downward in price in order to prevent a larger awareness of the failure of Modern Monetary Theory and the slow and steady debasement of global currencies. Eventually, of course, this levered, distorted and highly risky “price fix” will implode under its own weight along side the growing public and global move away from, and distrust of, debased fiat money.
For more on gold price fixing, please read here and here, or watch this most recent video discussion, here.
How Big is the Paper Gold Market Compared to the Physical Gold Market?
There are currently around 109 ounces of “paper gold” contracts traded for every ounce of physical production. The stark deficit between these numbers demonstrates the fragility of global gold exchanges and highlights the necessity of owning physical gold.
