Close X Cookies are necessary for the proper functioning of By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...

Lee Quaintance and Paul Brodsky: For gold market rigging, look east too

IMG Auteur
Published : December 19th, 2012
412 words - Reading time : 1 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...





In their latest market letter, Lee Quaintance and Paul Brodsky of QB Asset Management in New York add credence to speculation that the gold price could not have been so restrained lately without the assistance of China and Russia and maybe even Japan and South Korea, all eager to hedge their dollar exposure with gold but unable to get it in size without a long period of price suppression.

Quaintance and Brodsky write:

"According to most dyed-in-the-wool hard-money advocates there is a 'gold cartel' that suppresses the gold price. They tend to argue that U.S. banks continually short gold (and silver) futures nakedly, clipping significant yield each quarter without sufficient metal in stock to deliver to futures buyers if exercised.

"They further argue that these banks do not fear regulatory reprisal, and in fact that their actions are blessed by the powers that be because runaway gold prices would signal to the world that there is something wrong with the currencies gold competes with, notably U.S. dollars. Thus, as the argument goes, banks have the means, motive, and implicit sovereign go-ahead to suppress the gold price.

"Mmmm, maybe. We certainly agree that gold should fundamentally be priced much higher than where it is and that the way gold futures seem to be reliably stepped-on before Treasury auctions and Fed meetings is a bit snarky. But as for the progenitors of the crime? It might be better to look east.

"Conspiracy theorists should consider foreign dollar reserve holders that would like to take delivery of as much physical gold (and silver?) as possible in a very short time, and do so at cheap prices. It would be simple to do: Fund offshore hedge funds that continually short gold futures through U.S. bank accounts, thereby keeping the spot price and London fixings down. Physical gold could then be delivered to sovereign accounts directly from mines and through exports at the suppressed prices."

In any case, it's worth remembering, as GATA has reported, Russia and China long have known all about the Western central bank end of the gold price suppression scheme, and well might have devised a course of action in regard to it:

And if somehow Russia and China have not devised such a course of action, they too may want to read the latest QB Asset Management letter, which is titled "It's Time" and which Quaintance and Brodsky graciously have allowed GATA to post in PDF format here:



Companies Mentionned : Signal |
Data and Statistics for these countries : China | Japan | Russia | South Korea | All
Gold and Silver Prices for these countries : China | Japan | Russia | South Korea | All
<< Previous article
Rate : Average :5 (1 vote)
>> Next article
Chris Powell is the secretary of the Gold Anti-Trust Action Committee (GATA) which has been organized to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
Mining Company News
Tribune Res.(Ag-Au)TBR.AX
Notice of Annual General Meeting/Proxy Form
AU$ 4.05-1.22%Trend Power :
Corporate news
Black HillsBKH
3:41 am Black Hills Corp raises its FY15 EPS guidance
US$ 43.33-1.23%Trend Power :
Corporate news
Goodrich Petroleum(Ngas-Oil)GDP
Goodrich Petroleum Announces Private Exchange Transactions for Convertible Senior Notes
US$ 0.82+1.23%Trend Power :
Corporate news
Carmanah Tech CorpCMH.TO
Carmanah Releases Preliminary Financial Results for Q3 2015
CA$ 6.01+2.04%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Raises 2015 Earnings Guidance and Announces Analyst Day Presentation Topics
US$ 43.33-1.23%Trend Power :
Corporate news
Impact Silver(Ag-Au-Cu)IPT.V
IMPACT Silver Provides Update on New Capire Mineral Resource Study
CA$ 0.18+16.13%Trend Power :
Corporate news
Bankers Petroleum(Oil)BNK.TO
Edited Transcript of BNK.TO earnings conference call or presentation 7-Oct-15 12:30pm GMT
CA$ 2.44-6.87%Trend Power :
Corporate news
Cheniere Energy(Oil)LNG
LNG Bust Could Last For Years
US$ 53.04-0.47%Trend Power :
Corporate news
Callon PetroleumCPE
4:18 pm Callon Petroleum announces that the borrowing base under its senior secured revolving credit facility was increased by 20% to $300 mln
US$ 8.86-3.90%Trend Power :
Corporate news
Callon PetroleumCPE
Callon Petroleum Company Announces 20% Increase in Borrowing Base
US$ 8.86-3.90%Trend Power :
Corporate news
Comments closed