Market analyst and author James G. Rickards this week schooled ITM Trading’s Daniela Cambone about the gold depository at Fort Knox.
A visit to Fort Knox by President Trump and his adviser Elon Musk would be, Rickards says, “the mother of all photo ops,” but the gold is still there, even if all of it isn’t of the highest purity.
The bigger question, Rickards says, is whether the gold is leased or rehypothecated. That is, “You can have a hundred tonnes of paper gold transactions supported by one physical tonne that got leased by the Treasury to JPMorganChase.”
While Rickards says he would suggest posing the leasing question during a tour of Fort Knox, if you ask the leasing question, “you’re tampering with the primal forces.”
He elaborates, quoting the former head of the JPMorganChase commodity desk, Blythe Masters, as having said, “Gold never settles.” That is, gold trading long has been just a lot of paper trading, and if it was ever more than that — if, instead, delivery of real metal was commonly demanded — “the price would explode.”
With delivery apparently being demanded more often lately by central banks and others, the gold price indeed has been rising fast.
Of course for many years GATA has shared Rickards’ analysis of gold leasing as a key element of Western gold price suppression policy. Seven years ago Rickards kindly gave GATA permission to reprint the section of his book, “The New Case for Gold,” that explains how gold leasing has been used to manipulate the gold price:
https://www.gata.org/node/18235
Such analysis of gold price suppression could not be publicized during Cambone’s long tenure doing softball interviews for the Kitco internet site. But now, apparently, the gold leasing racket is understood widely enough that it can start to be discussed in polite company. Cambone seems to endorse Rickards’ comments about gold leasing as if she knew what was going on all along.
Well, maybe she did but just wasn’t permitted to share that knowledge with her audience, and flash! Now it can be told! Better late than never.
Rickards’ remarks to Cambone about gold leasing deserve the widest audience and can be heard at YouTube here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
[email protected]
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