Zero Hedge: “The suppression of gold prices is essential at all costs to the Anglo-American banking interests. The saber rattling and attempts to lure Russia and China into military conflict are about who controls the financial world.”
Opinion: It has been a curious phenomenon to me seeing gold and silver prices decline over the past 3 years, while the central banks of the US, Japan, and more recently the EU, print new (fiat) money to escape a never-ending financial crisis.
Typically, adding counterfeit money to any economy will devalue existing money, causing inflation and the price of precious metals and interest rates to rise.
In an effort to keep interest rates low, central bankers have created trillions in new money to buy massive amounts of bonds that have held interest rates down while negative counter-effects have been muted.
My (Conspiracy) Theory: Suppose that at the same time they have been buying up bonds, central banks sold short massive amounts of gold to keep the price from rising out of control. (sold gold contracts they don’t own with the intention of buying it back in the future).
Rising gold prices are clear evidence of a paper money problem and potential collapse. By suppressing gold, financial markets would be fooled into complacency that the Central Bank plan of money-printing was actually a good thing and that it would eventually solve the financial crisis.
The US dollar would then rise (which it just did) and the world reserve currency and global economy would stablize.
Fact: Russia and China, seizing an opportunity to buy precious metals cheep and weaken the US superpower, began buying gold quietly as evidenced by the charts above and below.
In the fiction chapter of our book Antichrist: The Search For Amalek, we theorized a move by Russia and China to dethrone the US dollar and replace it with the renminbi as part of a basket of currencies:
Excerpt: “As the top-secret meeting got under way, John Brennan had disturbing news to share. He informed the group that there was urgent intel from our people on the ground in the Far East. China was about to make a move with support from Japan, Russia, and the European Union to dump the dollar as the world reserve currency.
They planned to institute the renminbi, either alone or as part of a basket of currencies called Special Drawing Rights (SDRs), which would include the euro and the yen. Brennan told the cabinet that China had been buying large amounts of gold for the past five years in an effort to build global confidence in the Chinese currency. Their aim was to make the renminbi the de facto reserve currency and to increase global influence.”
Disclaimer: This theory is in no way an encouragement to go out and buy gold. If I am correct, there is no way to know when central bankers will buy-in their short positions.