do banks mainpulate the price of gold to make inflation look lower?

Discussion in 'Economics' started by zdreg, Oct 6, 2007.

do central banks manipulate the price to lower peoples expectation of inflation?

  1. yes central banks try to affect the price of gold

    14 vote(s)
  2. no they don't try to affect the price of gold

    8 vote(s)
  3. the price of gold does not affect the expectation of the future inflation.

    4 vote(s)
  1. zdreg


    yes central manipulate price of gold

    no they don't manpulate the price of gold.
  2. zdreg



    Read what John Embry has to say about this. This Canadian runs the Sprott gold fund with a 21% avg annual return for the past 5 years. It also returned 56% in 2006. I believe that the fund is in the hundreds of millions of dollars.
  4. gnome


    A safe bet in general... Banks and Governments manipulate EVERYTHING, including information, which conflicts with their short-term greed objectives. Gold is certainly that.
  5. Agreed. It's now different than oil companies that run trading desks, not only to hedge but to run up the price on oil to keep their profits up high and good.
  6. gnome


    It has often been said, "The first casualty of war is the truth".

    The same can be said for the Powers... Gummint, Federal Reserve, Financial Services Industry, and the Media.
  7. I agree with most of that report - I disagree with the inevitable Bernanke bashing, and leased gold is no longer a drag on the market, as most companies are now buying in their hedges - and I see nothing in there about central bank manipulation. What I do see is the very real possibility that Russia and Asian central banks will pick up any gold that is sold by the signatories of the Washington Agreement. That ain't manipulation - that's a trade.
  8. One might think the chairman guilty of a surprising naïveté, or perhaps something a bit more sinister, but that’s a topic for another day. The relevance here is that gold, in addition to being a fundamental currency, is also a commodity, and as such the CFTC is responsible for oversight of its market.

    Greenspan waved off the necessity for the CFTC to regulate gold derivatives, telling Congress to fear not, that the “central banks stand ready to lease gold in increasing quantities should the price rise.”

    Oops. Bet he wishes he hadn’t let that slip. “Greenspan was telling Congress that the purpose of gold leasing was not what the central banks had been telling the world—to earn a little money on a dead asset. The real purpose of gold leasing was to suppress the gold price. His remarks are still posted on the Federal Reserve’s Internet site.”

    #10     Oct 8, 2007