Gold leasing is a fraud because central banks haven’t wanted their metal back
Submitted by cpowell on 12:06PM ET Thursday, July 11, 2013. Section: Daily Dispatches
3:21p ET Thursday, July 11, 2013
Dear Friend of GATA and Gold:
Gold leasing is a fraud and conspiracy, Jeff Nielson of Bullion Bulls Canada writes today, since central banks that lend gold know that it eventually will be sold into the market to diminish the value of the asset, which isn’t really their own but something they hold in trust for their nations:
But the bigger fraud here is on the gold and currency markets. For while gold is an asset of central banks, its value is the reciprocal of assets far more important to them — their currencies and government bonds.
When they have lent gold in recent decades, Western central banks have not really wanted it back; rather they have wanted the gold price suppressed or controlled and the value of their currencies and bonds thereby supported.
That is probably why, throughout the last decade, the gold price rose steadily even as practically every week brought announcements of gold sales by Western central banks or the International Monetary Fund. No new gold was hitting the market in these "sales." Rather, most likely the "sales" were just cash settlement cancellation of leases for gold that had hit the market many years before and could not be recalled without spiking the market upward too fast for the comfort of the market riggers.
That is also probably why Barrick Gold claimed to be the agent of central banks when it borrowed and sold their gold to finance its operations –
– and why Barrick often boasted that its central bank gold loans not only had 15-year terms but were renewed every year so they became "evergreen," or perpetual, as was explained in this Barrick financial report from 2006: