Two unsolved mysteries in the gold market: gold price manipulation and China's gold reserves.
China competes for the way of gold pricing.
A leaked email: Why did the United States suppress the price of gold? Why did China buy gold?
Foreign media declassified: China secretly bought gold instead of gold bars to buy gold mines.
Special review
As we have explained, many agents of the Federal Reserve and international savings banks (mainly JPMorgan Chase, HSBC and scotiabank) sell naked on the Comex gold futures exchange to depress the rising price of gold. Because there are so many naked selling transactions in the futures market, artificial "paper gold" has increased, and with the increase of "paper gold" supply, the price of real gold has been depressed.
Hedge funds, as the main buyers of this short-selling operation, do not want the trading contract to be executed to obtain the actual gold, but settle in cash. This means that banks selling naked contracts do not have to bear the risk of not being able to deliver gold at all. At any given time, the amount of gold traded on paper may exceed the actual physical gold that can be delivered, which will not happen in other futures markets.
In addition, the gold and silver futures market is not a place for people to buy and sell gold and silver. The actual operation is that people speculate the price through different mathematical formulas in this market, and hedge other bets through gold futures. Virtual paper trading determines the actual price of gold and silver bars. Even though the demand for gold and silver in the real market is increasing, the price of physical gold and silver is depressed because of the existence of speculative market.
Last Tuesday, for example, the American Mint announced that the American Eagle had sold an ounce of silver coins. This contradicts the theory of supply and demand: high demand, low supply and falling prices. This abnormal market phenomenon can only be explained as creating supply for paper virtual exchanges.
Obviously, fraud and price manipulation are in power, but there is no upper level to supervise. Because the pressure of precious metal prices will protect the dollar from continuing to hold its currency position in the world and prevent gold and silver from becoming market media mechanisms, thus affecting financial and historical development, the Federal Reserve and the US Treasury Department support this kind of fraud and price manipulation. Depressed gold prices suppressed these warning signs and allowed bubbles in financial markets, which enabled Washington to impose sanctions on other countries that did not act as storage currencies.
We have to pay attention to the OTC derivatives market, which has also played a role in price pressure and played a long-term role in price manipulation of savings banks in the futures market.
OTC derivatives are private structured contracts created by large secret banks. They are a piece of paper, a derivative, a contract with financial commodities as the subject matter, or a commodity, and there is little information about them. Brooksley Born, chairman of the Commodity Futures Trading Commission (CFTC) in the United States, accurately said during the Clinton administration that it is necessary to formulate regulations to manage derivatives. However, all the agents of Federal Reserve Chairman alan greenspan, Treasury Secretary robert rubin, Deputy Treasury Secretary lawrence summers and US Securities and Exchange Commission Chairman Arthur Levitt must convince Congress that CFTC should not establish rules and regulations on OTC derivatives.
The lack of rules and regulations means the lack of information, that is, the motivation of banks to use these derivatives is not clear. JPMorgan Chase was investigated for shorting a silver position in Comex, and JPMorgan Chase tried to convince CFTC that this short position was only a hedge of OTC derivatives. In other words, JPMorgan Chase used its OTC derivatives to cover up his attacks on silver prices in the futures market.
During the period of 20 15, the price of gold and silver bars was attacked more seriously, which led to its lowest level in recent years. In the first quarter of this year, the number of precious metal derivatives increased significantly.
If it is a short-selling transaction of many hedge banks on Comex, why do gold and silver prices fall?
More and more evidence of price manipulation in the futures market comes from the falling prices of gold and silver, although the demand for physical metals is rising so much that the American mint has sold silver coins. Greece's veto increased systemic uncertainty. According to common sense, the price of gold and silver bars in the market should go up rather than down.
The detailed but unprovable evidence is that the unconstrained OTC gold and silver derivatives are not really hedging Comex's short positions, but are themselves another round of impact on precious metal prices.
If this assumption is correct, it shows that in the past seven years, the big banks have controlled the Federal Reserve and the US Treasury, and they have spared no expense to maintain the status of the US dollar, including tolerating illegal acts of cracking down on the prices of gold, silver and gold bars.