LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines to Launch New Website

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA


GoldSeek Web

Explaining gold price suppression, Indian magazine cites GATA, Butler, Sprott

By: Chris Powell

 -- Published: Sunday, 8 October 2017 | Print  | Disqus 

Dear Friend of GATA and Gold:

While there's no telling when exposure of Western central banking's longstanding scheme to suppress monetary metals prices will explode the scheme, word is getting around the world. This is signified by a long commentary published in this month's edition of an Indian magazine of politics and economics, Swarajya, written by Shanmuganathan Nagasundaram, founder of a financial consulting firm.

Nagasundaram's commentary, headlined "Gold Can Help India Set Global Agenda on Monetary Policy," cites the work of GATA, silver market analyst Ted Butler, and Canadian investment house founder Eric Sprott.

Nagasundaram writes: "Going by the price action of the last six years, readers might be tempted into believing that the demand for gold is less than the supply. Nothing could be farther from the truth. Annual demand has been running far ahead of gold mine supplies, and prices have been contained through a deliberate price suppression mechanism orchestrated by the Bank for International Settlements through the U.S. Federal Reserve and the Bank of England.

"Through a series of papers titled 'Do The Western Central Banks Have Any Gold Left?,' Eric Sprott of Sprott Inc., a global precious metals investor, has shown that annual net consumer demand has been running for the last decade or so at about 4,000 tonnes per year, whereas the new mine supply has averaged about 2,800 tonnes.

"How prices have been contained under such conditions of demand-supply mismatch is a rather technical issue that will need a separate article by itself. Just to provide a one-line summary, it's done in the futures market by holding concentrated short positions by non-verifiable participants. For interested readers, this issue has been extremely well documented by the Gold Anti-Trust Action Committee, metals price analyst Ted Butler, and several others.

"What is more relevant here is how this supply shortfall to the tune of around 1,000 tonnes per year has been met with year after year. As has been shown by Sprott, this marginal supply could have come only from the Western central banks without disrupting overall market conditions.

"A valid question would be: Would these sales not be reflected as a decrease in gold holdings on their balance sheets? The central banks sidestepped the issue by showing owned and leased holdings of gold as one line item.

"So, as happened during Raghuram Rajan's tenure, the Reserve Bank of India (RBI) swapped/leased a good portion of its 557-tonne gold reserves with the Bank of England. The Bank of England, in turn, would lease this gold to one of the participating banks, which would then sell it on the open market. The gold would then be reflected as being owned by both the purchasing individual as well as the RBI.

"This double counting of gold could well be to the tune of around 20,000 tonnes (around 15 percent of total supplies above ground), and the chance that the RBI gets this leased gold back is very slim."

Nagasundaram's commentary is posted at Swarajya's internet site here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 25-28, 2017
Hilton New Orleans Riverside Hotel, New Orleans, Louisiana

Mines and Money London
Business Design Centre
London, England, United Kingdom
Monday-Thursday, November 27-30, 2017

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

| Digg This Article
 -- Published: Sunday, 8 October 2017 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.