by Bill Holter, Miles Franklin:
News came out late Tuesday that the gold market will be investigated in London for price fixing in similar fashion to the Li (e) bor (London interbank offer rate) rates. I have absolutely zero doubt that this is true with the exception of one minor detail. In the case of Li (e) bor, the “fixing” of rates was between dealers. Yes it did benefit the central banks and various global treasuries with rates lower than they would have been but I am skeptical that any direct coordination existed between firms and central banks. As I’ve written prior, I was somewhat surprised that any blame or fingers were pointed in this episode because it does hit pretty close to central banks homes.
Gold price “fixing is a whole different story because a part of the “mechanism” to suppress price comes directly from central banks and treasuries themselves. Namely the physical gold itself is to make delivery.
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