German gold market expert Dimitri Speck points to some more important factors acting on the global financial market and the price of gold, which go beyond the recurring geopolitical tensions that are often cited as the main reason.
"The manipulation of gold prices began on August 5, 1993", says the German analyst and the motive was none other than an agreement between the various central banks and the chairman of the Federal Reserve of the United States, Alan Greenspan, "who did not want the price of an ounce of gold to exceed 400 $" because an uncontrolled increase in the price of gold could affect the "inflationary thermometer".
Thus, this agreement was in force for several years and materialized by acting on the markets with sales orders and gold loans thanks to the approval and participation of other central banks, which, recalls he "works in close collaboration with private banks and financial institutions".
The way to operate and manipulate the prices was very simple because these entities had large amounts of gold which they used to control, especially lower the price of gold, by expelling from the market potential buyers of the metal who did not have the expected return on their investments. States are the first to benefit from these practices, especially the United States, because their currency, the dollar, is the global benchmark currency and gold is the main rival of that currency based on loans. The rise in the price of gold is increasing debt and public deficits, especially in the United States.
Speck's ideas are found in his book entitled " Secret Monetary Policy: Why Central Banks Manipulate the Price of Gold "(book exclusively in German here), which explains that this policy also influences the benefits that banking systems themselves derive from financial manipulation and the price of gold.
The conclusion drawn from reading the book is that the US banking system is a major beneficiary of this process of manipulation of the price of gold.
"When the price of gold falls, the dollar rises and its international standing becomes better than it really is."
From there, banks can then lower interest rates to lower inflation expectations. A lower interest rate makes borrowing easier, which is good for the government and, of course, for the banking system, although these practices were the main factors blamed on the last global financial crisis.
Source of the article: Inter-Or.com, buying gold in Paris