An interesting article by Jeff Nielson looking into the world of gold bullion leasing. It has often been said that you can’t sell what you can’t own, but in a world of fiat currencies where one party or person has been given permission to counterfeit money on behalf of the government it doesn’t take a lot of imagination to see that things can get a little hairy. Anyone who’s watched the activity in the metals markets will tell that there are some really strange things going on. In spite of very little metal changing hands, gold prices have taken a pounding during the last 12 months. The reason for the disconnect between physical gold prices and paper prices can be attributed to the bullion leasing activities of central banks and their sister bullion banks. To see how the activities of banks (particularly central banks which are no longer bound by a gold-backed currency) might have a wee bit of conflict of interest, this Reuters article provides a nice explanation of what’s been going on.
“some speculators are borrowing physical bullion and then selling it, a move that could add downward pressure to gold prices.”
If you stop for even a few minutes to digest the information in that article, then couple that with the dissent and deceit of our federal reserve system, it’s hard to deny that the banks are playing a very active part in the manipulation of the metals markets. In a world where the CFTC has turned a blind eye to fraud, Bill Murphy of GATA (The Gold Anti-Trust Action Committee) provides a more detailed discussion of the bullion leasing activities and the suppression of the market here in this video interview.