Pacific Group’s Bill Kaye: Gold plunge was an operation by Fed, big banks
By: Chris Powell, Secretary/Treasurer, GATA
Sunday, 12 May 2013
Dear Friend of GATA and Gold:
April’s abrupt plunge in the gold price was an operation of the Federal Reserve and major banks to protect the Fed’s “quantitative easing” and paper gold shorts that can’t deliver the metal they have sold, Pacific Group founder and fund manager William S. Kaye writes in the May market letter of Pacific Group’s Greater Asian Hedge Fund.
Kaye, who in January announced his fund’s commitment to a major purchase of gold —
— adds that gold exchange-traded funds are being used to manipulate the gold price and essentially are being looted by the banks that are short the metal. He expects paper gold to default this year and the gold price to be reset upward.