Despite having overwhelming data that the price of gold is manipulated in both the Comex paper markets, and through an elite body of people at the London Gold Fix, economists and central bankers have continuously lied about their involvement in depressing gold as a means to protect their currencies and prop up derivative markets.
But on July 20, a White Paper published by Dirk G. Bauer at the University of Australia School of Business was revised to show just how much central banks use gold price manipulation and the gold carry trade to protect their paper fiat currencies, and keep their managed systems from imploding due to normal market forces.
Central banks hold gold reserves that are designed to build confidence in fiat currency. This confidence is undermined if the price of gold falls significantly or rises significantly. Central banks thus have an incentive to manage the price of gold. Such management is evident in fixed gold prices in the early 20th century, in Central Bank Gold Agreements more recently and in the asymmetric correlation between monthly central bank gold reserve changes and gold price changes. The empirical analysis further analyzes gold lending by central banks, linkages between central banks, bullion banks and mining companies and the gold carry trade. We conclude that coordinated and shadowy gold operations by central banks are necessary for successful gold price and gold reserves management and demonstrate the power of market forces relative to central banks. - SSRNThere are no such things are markets anymore, only interventions.