The Monetary Crisis XVI

The end of the gold-market

jwr1947

According to Gold Hotline an analysis of failures in a gold-price forecast revealed a manipulation of the gold market in 19971. The Telebrse"-report published 2000 had discovered the reason for the falling gold-price in the gold-lending market. In 2000 the gold lending volume had been calculated at 8.000 10.000 t. At that time the central banks seemed to be willing to allow ample gold-loans to the investment bankers. In order to do so the central banks might be lending their complete stock of 34.000 t of gold, enabling them to play the game for another 13 years at a median lending rate of 2.000 t. In 2000 however analysis had been based on a lower gold-price, leading to low mining volumes. In fact rising prices triggered mining efforts and higher yield, which might have delayed the 13-years limit. According to the report responsible bankers must have been aware in 2000 that investment bankers would never be able to return the gold-loans. This situation would easily be recognized by other market members, who might feel enabled to blow the market in a few minutes. For their customers Gold Hotline suggested 2000: 1. The manipulation may be lasting for some more years. 2. Low volumes of dedicated acquirement of physical gold might blow the market in a few minutes, resulting in an immediate closing of the market (which repeatedly had been happening in 1980). Even international magazines such as "Economist" and "Financial Times", which have been identified for their gold disliking positions discussed the gold manipulation in 2000. The Gold Hotlinereport 2000 summarized: the exact moment for the collapse of gold manipulation cannot be foreseen. The longer we will have to wait for the collapse the steeper the raising goldprice will be soaring.

This analysis had been written in the year 2000, which is thirteen years ago. Therefore the end of the gold-market is to be expected soon2, described as a forced closure of the gold-market by the US-central bank. As usual these notes are my own remarks and opinion, based on private investigations without any guarantee for correctness.

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Source (in German): Die Telebrse" besttigt Goldpreismanipulation (07/00) With a few months of accuracy for uncertainties in the predicted median lending rate (of 2.000 t/year)