How have they done to lower the price of gold ?

How have they done to lower the price of gold?

This is a rather complex but can be simply explained. Central banks, initially, did not put their own gold for sale. They found a third, him, had gold. This "third" sold his gold to a broker who then sold it to a mining company, a speculator or a government. This third party then got the support of the broker itself with the promise of the central bank to supply physical gold if needed. The central bank was getting, as collateral, a private note to the broker who received a commission. This method allowed to mobilize gold reserves outside the government. The gold price in world currency was maintained to the extent that significant quantities of gold bullion certificates were replaced by commercial banks (as well as anyone wishing to join the game).

This game was not lost for a few large buyers looking to buy GOLD BUT NOBODY DOES noticed. Why not play the game by offering cash to the broker or bank in exchange for a certificate for gold indirectly supported by the central bank? This certificate, or "paper gold" was exactly like gold to the bank. Central banks have accepted this system as it has prevented any movement of gold and appropriate to exit the market purchasing power is very important that might have been able to climb sharply if the price gold purchases had been made on the market ..



These certificates have also worked well as a vehicle for providing the gold paper into the oil business.



But a new situation has emerged just at the end of the first Gulf War. Which previously appeared as large sums suddenly took another dimension when big players in Hong Kong began to buy on the market while physical gold and all the tickets pledged on gold. With particularity, however: they bought at lower prices to lower and lower gradually as the price of gold fell. But, and this is the most important, they never attempted to raise prices, and seemed to have unlimited means. In any event, they were still buyers.



Seeing this, some people (Middle East), began to exchange their gold certificates against gold bullion.



Since then, that is to say since the beginning of 1997, the LBMA (the gold market of London, ndt) has seen its volume rise very significantly, and a battle began to keep the price gold does not rise. In other words, the volume of paper has negotiated the fly and adjust the volume of physical gold that changed hands, and it was quite a leap upward.



More importantly, it was no longer possible to hide what was happening.