Gold Price Suppression and Management to End

By Julian D. W. Phillips, GoldSeek

Is the Gold Price really Managed or Suppressed?

We have absolutely no doubt that the gold price has been and may well be, being either suppressed or managed.

Just look at the record of gold sales in the 70’s, 80’s 90’s and in this century so far.   Gold was sold during these periods, first by the United States.   It was done to discredit gold as money and to support the U.S. $ as the prime global reserve currency.   President Nixon removed the convertibility to gold and faced a world that did not want to replace gold with the $.   Tying it to oil payments made it a globally needed currency.   But the gold price rose and in so doing cried ‘foul’ pointing to the fact that the $ was simply an American government promise to pay.   By discrediting gold it was taken out as an alternative money and by describing it as a ‘barbarous relic’, implied that paper money was superior.   In fact it allowed the development of the present banking system with U.S. bankers very much at the global money helm.

Considered on a global scale it became clear that ‘paper’ money allowed more scope for banking systems than gold  [it governed the money system, bankers didn’t].   So gold was shunned to the distant background of the monetary system.

After the U.S. gold sales stopped [the demand was just too great], the I.M.F. tried it, but these too failed.   Then the implied threat that central banks would sell gold deterred investors and the price steadily fell from a peak of $850 to $275.   This fall was supported by central banks lending gold to gold producers to hedge forward for many years to maximize income and was repaid when the gold was produced, effectively ‘shorting’ the market.

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