Gold Market Manipulation Reaches Mainstream German Media
by Fabrice Drouin Ristori May 30, 2014, 12:35 pm
Gold Market Manipulation Reaches Mainstream Media via GoldBroker.com
Gold price fixing manipulation goes mainstream on public TV channel 3sat, a cooperation between Germany, Austria and Switzerland. This documentary exposes "an examination of gold prices reveals machinations fit for a financial thriller."
Eva Schmidt: Good evening and welcome to Makro, your business magazine. Many people purchase gold as a safe haven, or as insurance against bad times. That is why people were lining up at gold dealers at the height of the 2008 crisis. Gold, throughout history, has always represented reliability and stability. But today many people doubt that it is still so, especially when what one can find out by examining the gold prices sheds some light on some shenanigans you’d expect to read in a financial thriller.
Narrator: London, the most important gold market in the world. Here is where the price of gold is determined. Twice a day, through a conference call, a few bankers get together to fix the daily price of gold. This constitutes the most important benchmark for the value of physical gold, and it is used by all sorts of businesses, from jewellers to gold mines. And this « fixing » is not subjected to any public oversight. And it would seem that this lack of restraint paved the way to some very serious manipulations of the price of gold, as demonstrated by a current investigation. They have detected many strange price movements that have been going on for many years.
Rosa Abrantes-Metz: The setting of the gold fixing is, in my view, problematic. It opens the door for abuse and manipulation. There is absolutely no transparency in the arrangements made during the private phone conversations of this small group of participants as they decide what the price of gold should be.
