Barclays Caught Red Handed Manipulating Gold

Wednesday, May 28, 2014
By Paul Martin

by Keith Weiner
GoldSeek.com
Wednesday, 28 May 2014

It was all over the news last week, both mainstream and gold sites. Barclays was caught manipulating the gold price. They were fined £26M, and forced to pay a client who was damaged by their action. The trader who worked for Barclays, Daniel Plunkett, was also fined and banned from working in the financial sector. Here is a link to an article at the Financial Times.

This story is a big deal to the gold community.

It is commonly held that the gold price should be much higher than it is today. For example, many think the proper gold price is the money supply divided by the gold held by the US government. The monetary base is currently about $4T. The US Treasury owns about 261M ounces of gold. Simple math gives us $15,300 per ounce. If we use a broader measure of the money supply, the gold price should be even higher.

Also, there is the argument from common sense. Since 2008, the Fed has been “printing” trillions of dollars. Its balance sheet ballooned from just over $800B to just under $4.4T today. With all this fresh, new money flooding into the markets, why isn’t the gold price reacting as it should?

There are other theoretical arguments why the gold price should be skyrocketing. Instead, the fact is that it’s been dropping since 2011.

It must be that someone is pushing the gold price down. How else can we explain why the price is $1,300 and falling? They are keeping it thousands, if not tens of thousands of dollars, below the level where it ought to be.

The Rest…HERE

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