grandich report ... comment on mining stocks, page-7

And a bit more evidence.....

Among the many items of evidence cited by GATA Secretary Chris Powell in his superb article “There Are No Markets Anymore, Just Interventions,” all of which are matters of public record, are:

1: It was a matter of public record in January 1995, when the Federal Reserve’s general counsel, J. Virgil Mattingly, told the Federal Open Market Committee, according to the committee’s minutes, that the U.S. Treasury Department’s Exchange Stabilization Fund has undertaken “gold swaps.” Those minutes are still posted at the Fed’s Internet site: http://www.federalreserve.gov/fomc/transcripts/1995/950201Meeting.pdf



2: It was a matter of public record in July 1998, six months before GATA was formed, when Federal Reserve Chairman Alan Greenspan told Congress: “Central banks stand ready to lease gold in increasing quantities should the price rise.” That is, Greenspan himself contradicted the usual central bank explanation for leasing gold – supposedly to earn a little interest on a dead asset – and admitted that gold leasing was all about suppressing the price. Greenspan’s admission is still posted at the Fed’s Internet site: http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm

Incidentally, while we love to cite Greenspan’s testimony from July 1998 because of its reference to gold leasing, that testimony was mainly about something else, for which it is far more important today. For with that testimony Greenspan persuaded Congress not to regulate the sort of financial derivatives that lately have devastated the world financial system.

3: The Washington Agreement on Gold, made by the European central banks in 1999, was another admission – no, a proclamation that central banks were working together to control the gold price. The central banks in the Washington Agreement claimed that, by restricting their gold sales and leasing, they meant to prevent the gold price from falling too hard. But even if you believed that explanation, it was still collusive intervention in the gold market. You can find the Washington Agreement at the World Gold Council’s Internet site: http://www.reserveasset.gold.org/central_bank_agreements/cbga1/