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Thread: State Dept. cable confirms gold futures created for price suppression

  1. #1
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    State Dept. cable confirms gold futures created for price suppression

    http://www.gata.org/node/17081

    State Dept. cable confirms gold futures market was created for price suppression

    Submitted by cpowell on Wed, 2017-01-04 16:28. Section: Documentation

    11:31a ET Wednesday, January 4, 2016

    Dear Friend of GATA and Gold:

    The U.S. gold futures market was created in December 1974 as a result of collusion between the U.S. government and gold dealers in London to facilitate volatility in gold prices and thereby discourage gold ownership by U.S. citizens, according to a State Department cable written that month, obtained by Wikileaks, and disclosed today by the TF Metals Report:

    http://www.tfmetalsreport.com/blog/8...l-reserve-alch...

    The cable was sent to the State Department from the U.S. embassy in London and signed by someone named Spiers, apparently Ronald I. Spiers, the embassy's deputy chief at that time:

    https://en.wikipedia.org/wiki/Ronald_I._Spiers

    The cable describes the embassy's extensive consultations with London bullion dealers about the imminent re-legalization of gold ownership in the United States and possible substantial gold purchases by oil-exporting Arab nations.

    The cable reads: "The major impact of private U.S. ownership, according to the dealers' expectations, will be the formation of a sizable gold futures market. Each of the dealers expressed the belief that the futures market would be of significant proportion and physical trading would be miniscule by comparison. Also expressed was the expectation that large-volume futures dealing would create a highly volatile market. In turn, the volatile price movements would diminish the initial demand for physical holding and most likely negate long-term hoarding by U.S. citizens."

    The cable is interesting not just for confirming the assertions by GATA and others in the gold-price suppression camp that futures markets function largely as mechanisms of commodity price suppression and support for government currencies, an assertion perhaps first made comprehensively in 2001 by the British economist Peter Warburton --

    http://www.gata.org/node/8303

    -- but also for showing the close connection between the U.S. government and London gold dealers, some of which are cited by name, including Samuel Montagu & Co., Sharps Pixley & Co., Mocatta & Goldsmid, and Consolidated Gold Fields.

    The cable is posted at the Wikileaks internet site here:

    https://wikileaks.org/plusd/cables/1...ON16154_b.html

    CHRIS POWELL, Secretary/Treasurer
    Gold Anti-Trust Action Committee Inc.
    CPowell@GATA.org

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    Re: State Dept. cable confirms gold futures created for price suppression

    Quote Originally Posted by cheka. View Post
    to facilitate volatility in gold prices and thereby discourage gold ownership by U.S. citizens
    This concept would seem to be at odds with my experiences with the U.S. government (Dept of Ag). Their local office is called ASCS .. Agricultural Stabilization and Conservation Service ... key word being STABILIZATION. After long exposure to farming stabilization has come to mean BORING. They stabilize ag prices so the banker can rely upon a loan to the farmer being repaid. These are controlled markets and volatility is not very stable.

    Not saying they didn't take an opposite tack with gold though. It would be like a politician to convince others to abandon gold and specie in favor of free cheese and welfare.
    Make me one with everything.
    -- Zen Master to the hot dog vendor

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    Re: State Dept. cable confirms gold futures created for price suppression

    How High Gold Could Go? Find out what our latest analysis reveals in our special report on Gold and Silver. Go to http://bit.ly/2o781qP

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    Re: State Dept. cable confirms gold futures created for price suppression

    Quote Originally Posted by DohmenCR View Post
    How High Gold Could Go? Find out what our latest analysis reveals in our special report on Gold and Silver. Go to http://bit.ly/2o781qP

    http://i.imgur.com/LQcGwWU.gif

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