Gold price rigging fears put investors on alert
Key Excerpts from Article on Website of Financial Times
Posted: March 4th, 2014
Global gold prices may have been manipulated on 50 per cent of occasions between January 2010 and December 2013, according to analysis by Fideres, a consultancy. The findings come amid a probe by German and UK regulators into alleged manipulation of the gold price, which is set twice a day by Deutsche Bank, HSBC, Barclays, Bank of Nova Scotia and Socit Gnrale in a process known as the London gold fixing. Fideres research found the gold price frequently climbs (or falls) once a twice-daily conference call between the five banks begins, peaks (or troughs) almost exactly as the call ends and then experiences a sharp reversal, a pattern it alleged may be evidence of collusive behaviour. [This] is indicative of panel banks pushing the gold price upwards on the basis of a strategy that was likely predetermined before the start of the call in order to benefit their existing positions or pending orders, Fideres concluded. The behaviour of the gold price is very suspicious in 50 per cent of cases. This is not something you would expect to see if you take into account normal market factors, said Alberto Thomas, a partner at Fideres. Alasdair Macleod, head of research at GoldMoney, a dealer in physical gold, added: When the banks fix the price, the advantage they have is that they know what orders they have in the pocket. BaFin, the German regulator, has launched an investigation into gold-price manipulation and demanded documents from Deutsche Bank. The UKs Financial Conduct Authority is also examining how the price of gold and other precious metals is set as part of a wider probe into benchmark manipulation following findings of wrongdoing with respect to Libor and similar allegations with respect to the foreign exchange market.
Important Note: The above article was removed from the Financial Times website just two days after it was posted. How strange. To read the full article on another website, click here. And for a BBC article which shows how the Rothschilds fixed gold prices in the past, click here. For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.