Personally I think what Volker did was sell gold into the spike while he was raising interest rates. Raising rates on their own would not have worked if gold kept rising. I don't regard that as a conspiracy theory, I think it makes perfectly logical sense. If you had the worlds largest supply of the substance at your disposal wouldn't you use it to defend the fiat currency you are trying to replace it with?
I think his lamentation was because he should have started selling gold earlier, he shouldn't have let gold get as far away as it did.
I don't see why the suppression of gold needs to be a conspiracy theory any more than the US$ for oil deal made with Saudi Arabia. One is removing a potential rival while the other ensures the US$ predominant status. Both were strokes of genius. Both have worked for over 30 years, but all things come to an end.
RB, with all due respect you seem to have a presumption that banking is an honorable profession, above connivance and manipulation. Recent events should have removed all doubt on that.
As for your questions I answer 1 earlier. They only store a relatively small amount with the BOE or US. They've used the suppression to their advantage, not only quietly accumulating but ramping up internal supply and strategically buying resources rich land throughout Africa and South America as well. Now they are ensuring their own people are protected by allowing gold ownership after decades of that being illegal.
As for 2. The price tells us there are shortages. Rising prices = limited supplies. This is coinciding from a transfer from a paper market to a physical market. Same reason why the gold window was shut in the first place, France was demanding physical and the US didn't have enough of it. Why should now be any different?
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