Lbma Closes Off Public Access To Key Bullion Bank Trading Data

[lowrentyieldmakessense(honest!)]

boo

link

Typically when people are exposed in a scandal their first reaction is a cover-up. The most notorious examples of this are the Nixon administration, when it doctored the Watergate tapes, and Arthur Anderson, which shredded millions of pages of documents relating to audits of Enron Corp.

The LBMA has now commenced a cover-up with respect to the gold trading activities of its member bullion banks, withdrawing statistics from the public domain.

This appears not to be the only cover-up going on in the gold market.

For years the International Monetary Fund has made great fanfare of its mere contemplation of selling some of its gold, and actual sales by the IMF have been widely publicized. Since February the IMF has been surreptitiously selling large tonnages of gold each month, but these sales now are to be found only by digging through the IMF's financial statements, and even there the recipients of the gold are not disclosed. (See Reference 6 below.) One has to wonder why the IMF now is trying to fly under the radar with its gold sales.

Similarly it was recently discovered that the Bank for International Settlements didn't feel it necessary to announce its involvement in the largest gold swap in history, 346 tonnes. (See Reference 7 below.) The BIS swaps instead were discovered only because a market analyst dug through the footnotes of the bank's financial statements.

These developments have all the hallmarks of cover-ups.

In June the LBMA trading statistics showed that in May 2010 the average net daily trading in gold by LBMA member banks jumped a massive 50 percent from the month before to 24 million ounces each day from 16 million ounces each day. That translates to $7.5 trillion annually. If an operation is running on a razor-thin fractional reserve basis, such step changes are often fatal.

It appears that a run on the bullion banks has commenced.

There is a cover-up of back-door injections of liquidity of physical gold, and the LBMA now is trying to conceal trading information.

When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it.

Bastiat

[interestrateripoff]

Transparency is what the free market is built on.

Trust is fast disappearing.

[babesagainstmachines]

Talking to yourself again?

[General Congreve]

Hope this article is right, then I won't have to get a job soon, or possibly ever again

[lowrentyieldmakessense(honest!)]

Hope this article is right, then I won't have to get a job soon, or possibly ever again

methinks this game is going to drag out longer than some think

[sharpe]

methinks this game is going to drag out longer than some think

didn't something like this happen before - when the LBMA tried to maintain the $35 ounce fix. How did that play out?

[InternationalRockSuperstar]

didn't something like this happen before - when the LBMA tried to maintain the $35 ounce fix. How did that play out?

yes, the London Gold Pool. it played-out like this:

http://www.gold-eagle.com/editorials_01/judge052101.html

...

World Gold Crisis

On Friday March 8th, London sold 100 ton of gold at market, up from around 5 ton on a normal day. The following Sunday evening, the pool released the statement "the London Gold Pool re-affirm their determination to support the pool at a fixed price of $35 per oz". Fed chairman William McChesney-Martin announced the US would defend the $35 per oz gold price "down to the last ingot". That week the London Gold Pool continued to fight the free market process and defend $35.20 gold. By midweek it had emergency airlifted several planeloads of gold from the US to London to meet demand. On Wednesday the London market sold 175 ton, 30 times its normal daily turnover, and by Thursday demand exceeded 225 tons.

That evening emergency meetings were held in Buckingham Palace, with the Queen subsequently declaring Friday 15th March a "bank holiday". Roy Jenkins, Chancellor of the Exchequer, announced that the decision to close the gold market had been taken "upon the request of the United States".

Two-tier Market

The London gold market remained closed for two weeks, during which time the London Gold Pool was officially disbanded. During that two weeks, Zurich and French markets continued to trade with open market prices for gold exceeding $44 per oz (up 25% from London's official price of $35.20 per oz).

A fortnight later, an official "two-tiered" price was announced to the world, where the official price of $35.20 would remain for central banks dealings, while the free market could find its own price, the London market re-opening again on the 1st April.

...

Edited July 26, 2010 by InternationalRockSuperstar

[Mr. Spin esq.]

The silver market will blow up before gold does. Central banks don't hoard silver. Central banks can and will - try - to prop up casinos LMBA and Comex.