Thursday, August 16, 2018

Even CNBC is admitting central banks are dumping gold to suppress prices so that people will remain in collapsing currencies

In many instances history does repeat itself, but more often it is because those who do not learn from the past tend to do the same things over and over expecting a different result.

Back in 2008 when the world was starting to experience a global liquidity crisis, central banks dumped huge amounts of gold onto the markets at a time when the public was on the verge of exchanging their fiat currencies for gold.  And this was seen in how the price of gold went from $1020 per ounce down to $700.

In 2008, gold was taken from $1020 to $700 and silver was pounded from $21 to  $7 during the period of time that Bear Stearns, Lehman and the U.S. financial system was collapsing.  The precious metals were behaving inversely to what would have been expected as the global financial system melted down.   Massive Central Bank intervention was at play. – Investment Research Dynamics
Of course once the liquidity crisis went into full swing, central banks had to switch gears and begin a program of extreme money printing which led the gold price to skyrocket to $1940 less than three years later.

Fast forward to August 2018

Over the past 30-45 days, signs of a new liquidity crisis in the emerging markets has arisen in country's like Argentina and Turkey, causing the dollar to soar to levels not seen in nearly two years.  And as before during the last global liquidity event, central banks are once again dumping gold, even to the point where the Establishment's mouthpiece CNBC is admitting it is occurring.
"There's some central bank selling (of gold) out of the emerging markets," said RJO Futures' Alex Turro. "The emerging markets are rolling over with the lira."
Bullion has declined about 9 percent this year, pressured by rising U.S. interest rates, a soaring dollar and failure to capitalize on its traditional role as a hedge against global uncertainties. 
Investors have opted for U.S. Treasuries, seen as the ultimate safe haven, which meant they had to buy dollars, while bearish sentiment on gold led to liquidations in exchange-traded funds (ETFs) and a record level of short positions. - CNBC
Interesting as well, it also appears that gold price suppression is not just limited to emerging market central banks as GATA has confirmed that the Bank of International Settlements (BIS) has been dumping gold into the markets since July.
Meanwhile, behind the scenes, the Bank of International Settlements (BIS) has been actively intervening in the physical gold market during July, as detailed by Robert Lambourne, a consultant to GATA: 
Use of gold swaps and gold derivatives by the Bank for International Settlements, the gold broker for most central banks, increased by about 17 percent in July, according to the bank’s monthly report…The BIS’ July Statement of Account gives summary information on its use of gold swaps and gold-related derivatives in the month. The information is not sufficient to calculate a precise amount of gold-related derivatives, including swaps, but the bank’s total estimated exposure as of July 31 was about 485 tonnes of gold versus about 413 tonnes as of June 30. 
That is an increase of about 72 tonnes or 17 percent. The increase came as there increasingly appeared to be a correlation between the gold price and the valuation of the Chinese yuan, both of which fell substantially during the month.
The BIS refuses to explain what it is doing in the gold market and for whom, engendering suspicion that it is helping one or more of its members to manipulate the currency markets through deception.  To place the bank’s use of gold swaps in context, its current exposure of 485 tonnes is higher than the gold reserves of all but 10 countries. (documentation and links: BIS gold market intervention increased by 17% in July 
Like in 2008, gold price manipulation will only work for so long, especially since supplies of the precious metal are much tighter than a decade ago, and global debt is upwards of five times greater.  And for those who are students of history, the price suppression that is going on right now offers an extraordinary buying opportunity in what is to come for the precious metal, and for fiat currencies.

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