I think that this is no brainer. Since the amount of gold is not that significant compared to other countries holdings. It all could change if other countries do the same and not only from London, but from US as well where I don’t belive they keep as much gold as they say. This would definitely make an impact of gold prices. When it comes to gold real amount being held in US that’s another question. We know that central banks actively suppress the price of gold. How central banks use gold lending to manipulate their balance sheets, and also to manipulate the market for precious metals. For example there is this gold swamp technique which bank of London and Federal reserve bank of NY are practicing for decades. Let’s say that $200 million in gold was made available to the Bank of England, which it would then sell in the market for sterling at the price that it wished to get. They put the sterling currency into an account in London on behalf of the Federal Reserve Bank of New York. So what really happened was gold disappeared from New York and ended up as cash in the UK sect in London. But, for accounting purposes, the Federal Reserve Bank of New York showed a gold receivable where gold used to be. In other words this gold is still in NY bank, but it’s in London’s bank as well.
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