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Wednesday, 12 August 2015

The Worth of Gold Growing by the Day

F.William Engdahl
Land Destroyer 

NEOThe worth of gold in the world is growing by the day. That might seem like a paradox but it isn’t. The worth of gold is not fixed on the Comex futures exchange, or the trade in London or Zurich. True, most of the gold-trading public takes its cue today from the CME’s COMEX gold futures price where it does not at all look like the worth of a bar of gold is growing. Why can we then speak of gold’s worth rising?

On Comex the price of gold futures has gone from a high of $1896 in August 2011 to current lows of $1099, lows last seen six years ago, tendency downward. Here we come to the fallacy of composition where we extrapolate from one particular to the universal, when we assume that something is true of the whole just because it is true of some part of the whole.

The COMEX gold futures market in New York and the Over-the-Counter (OTC) trades cleared through the London Bullion Market Association do set prices which are followed most widely in the world. They are also markets dominated by a handful of huge players, the six London Bullion Market Association gold clearing banks–the corrupt JP MorganChase bank; the scandal-ridden UBS bank of Zurich; The Bank of Nova Scotia – ScotiaMocatta, the world’s oldest bullion bank which began as banker to the British East India Company, the group that ran the China Opium Wars; the scandal-ridden Deutsche Bank; the scandal-ridden Barclays Bank of London; HSBC of London, the house bank of the Mexican drug cartels; and the scandal and fraud-ridden Societe Generale of Paris.

Key central banks, notably the Federal Reserve and Bank of England, have been accused of colluding with the major clearing banks to artifically smash gold prices when, as they did in August 2011, gold threatened to get out of control and endanger the dollar’s role as world reserve currency primus. Organizations representing gold investors such as GATA have documented in detail for years how the manipulations of the gold price was carried out.

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