For years, there have been ugly rumors that there have been commodity trades that were designed not to merely sell gold but to create an image of weakness in the gold market. Yes, there are ongoing rumors of manipulation in the gold market. It is not really the true bullion market trading activity that has created that weakness but “paper trades” done on exchanges. At the same time, intelligent buyers of true gold bullion such as the Chinese, Indians and Russians have taken advantage of the price weakness to continue to add to their positions.

Our analysis suggests that without the rumored manipulation, gold bullion would minimally be selling at between $1500 to $1700 per ounce. Moreover, if the legitimate owners of the gold bullion for whom their gold is held in safekeeping demanded delivery, gold bullion would again approach $1900 per ounce or perhaps even more. There is another ugly rumor that the gold that is supposedly held in safekeeping at certain secure depositories is not at those “safe depositories.” We don’t have to tell you of the problems that Germany has had in requesting delivery of their gold held at safekeeping in New York. But of course those are just ugly rumors-of course!

We find it worth noting that huge non gold bullion “paper trades” are done during periods where there is very little if not near zero liquidity in the futures market. As well, you can see that huge amounts of “paper gold” were sold in a very heavy handed manner. Why is the question and for what purposes? It would seem that some people wanted gold bullion well below the US $1300 level. Certain central banks and most brokerage houses do not want to see a bull market in gold as that brings with it higher interest rates and a bear market in the industrial stock market.

Prisonplanet.com is an excellent and informative site that on a daily basis puts up some exceptionally informative and intelligent articles. In July 2014, Dr.Paul Craig Roberts, a highly respected economist wrote this article on prisonplanet.com…….We strongly recommend that you read the article and examine the transactions that suggest that manipulation occurred. In our view it is still occurring.

Manipulation in the Gold market…Yes!