Oct

28

 I just saw an item on the news that RBC I believe, had created a bubble index from data from many previous bubbles. I have not been able to locate it though they were looking for gold to hit over USD 3000. If anyone on the list has more info that would be interesting to know a bit more about the makeup of it. Though I did find this story from 2002 , which if it was indeed correct, would outline a reason for a lot of the pent up energy in the market together with demand and supply shifts in the years since, leading to gold where it is today.

The RBC report says the price of gold is going to explode and cites "Increasing Evidence of Unsustainable Gold Price Manipulation" as one of its reasons. The RBC report points to 11 "factors" of evidence regarding the gold price manipulation:

1) Aggressive gold lending, which from an economic perspective is indefensible, has filled the supply/demand gap.

2) New York Fed gold has been mobilized when the gold price is rising.

3) Timing of Exchange Stabilization Fund gains/losses corresponds to gold price movements.

4) Audited reports of U.S. gold reserves show unexplained variances.

5) Minutes of Fed meetings confirm officially denied gold swaps.

6) Rules on gold swaps have been revised and then denied. However, individual central banks have repudiated the denial.

7) U.S. gold reserves have recently been re-designated twice, initially to "custodial gold" and latterly to "deep storage gold."

8) Statistical analysis of unusual gold price movements since 1994 indicate high probability of price suppression. The invalidation since 1995 of Gibson's Paradox — that gold prices rise when real interest rates fall — suggests that the real manipulation began then.

9) New York gold price movements versus London prices trading defy odds.

10) Timing of huge increases in bullion bank gold derivatives is consistent with gold price declines.

11) A rapid decline in U.S. Treasury holdings of gold-backed SDR certificates is not explained.

The RBC report goes on to say: "One or two of these factors could be viewed as random, but the full body of evidence is overwhelming."

Anatoly Veltman comments:

It is important to keep exchange of info and ideas un-biased.

1. The bottom story of "suppression" is from GATAwebsite– this should be disclosed in BOLD LETTERS.

2. When RBCcame out with February 2002 report, gold was completing a four-year basing formation on price charts, trading in $200-handle most of that period. I also believed that market was dislocated to the down-side. I was 100% Long and was admonishing anyone willing to hold a Short position.3. Re-printing "same story text" following un-interrupted price move from that level to last week's $1388 record– again, one ought to attach tons of qualifiers. The accusations against US/other authorities remained unproven a decade later. Most important: how relevant is it in context of current price, fully 550% off that former bottom? 


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