Gold bugs ranting of manipulation. Naysayers echoing the cry of barbarous relic. Which one is correct and which is FOS?
Maybe some facts can shed some light.
Fact: Gold has been money for 5000 years up until 1971 when Nixon "closed the gold window" effectively taking the US off the gold standard and allowing all world currencies to float.
Fact: The US gold reserves have not been independently audited since 1953. The US records its gold holdings at $42 oz. to this day.
Fact: Gold has been in an uptrend since its low in January 2001 of $271 recording annual gains every year since (including the crash of 2008). reaching a high of $1900 in 2011.
Fact: the FED balance sheet has expanded 375%, all of that occurring since 2008. Among which the FED counts as assets are US debt instruments and MBS (and gold at $42oz)
Fact: the USGovt debt has increased from $10T in 2009 to $16T today.
Fact: Germany has recently called for its gold reserves to be repatriated (valued at $186B). Some 374 tons of gold were deposited in Paris, 450 tons went to London, and 1,500 tons were sent to New York City.
Deposits held in France are to be returned by the year 2020. Deposits from the US will be limited to 300 tons and will take 10 years to be returned.
Fact: The largest short against gold is held by HSBC, the custodian of the GLD ETF. The largest short against silver is JPM, the custodian of SLV ETF.
Fact: The gold price is set by "banking committee" in London daily, known as the London Fix.
Fact: The LIBOR is set daily by a "banking committee" in London.
Fact: Since its inception the FED has practiced what is known as "fractional reserve banking".
Fact: The CFTC launched an investigation into silver manipulation in 2009. To date it has not been closed or finalized.
Fact: The CFTC today announced their intention to look into the question of the gold price being manipulated in the London Fix.