Something’s Wrong in the Silver Pit: But It’s Much Bigger than J.P. Morgan

When researching the precious metals, often times things are seldom as they appear on the surface.  GATA Secretary and Treasurer – Chris Powell – has said that the true picture of a nations’ gold holdings are, “more closely guarded than their nuclear secrets”.

This has been more-or-less proven true based on the Federal Reserve’s reaction to GATA’s 2009 FOIA request for information concerning GOLD SWAPS. The Fed is ON RECORD admitting they’ve done gold swaps – which, by definition, necessarily utilize sovereign American gold stocks.

To date, the Federal Reserve has stonewalled GATA’s FOIA request citing their ‘privileged status’ and reluctance to divulge ‘trade secrets’.

GATA has maintained that the Federal Reserve / U.S. Treasury in conjunction with other Central Banks have for years been suppressing the price of gold [and silver too] – in efforts to mitigate and to cover up their own debasement of fiat currencies. 

Historically, when Central Banks or governments print more and more fiat money, precious metals prices RISE.  The money printing is not only inflationary but when done to excess it can undermine confidence in faith based fiat currency regimes.  Precious metal has no counterparty risk and cannot be printed – which is why it “is” and always will be money.  Remember folks, gold is money, as evidenced by EVERY Central Bank in the world listing gold bullion on their balance sheet as an official reserve asset.

GATA has identified and documented that Central Banks utilize precious metals derivatives, and in particular swaps, as a primary method by with Central Banks rig metal prices. 

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http://news.silverseek.com/SilverSeek/1292004828.php