Gold price is manipulated by the Fed, suspects mining tycoon Frank Giustra, but suppression can't last forever
Kitco News
Thursday May 05, 2022 12:48
The gold price has been “manipulated” by central bank authorities, in particular, the Federal Reserve for decades in a broader scheme to maintain U.S. dollar supremacy in the global monetary system, said mining and movie mogul Frank Giustra.
Giustra, who is the CEO of Fiore Group and also the founder of Lionsgate Entertainment, had in the past said that the price of gold was “managed” by central banks and bullion banks. Now, he is doubling down and saying that the price is “outright manipulated.”…
Due to the highly levered nature of the precious metals markets, gold is highly susceptible to spoofing, and other forms of trading manipulation, Giustra noted…
Giustra said that he believes the Federal Reserve is one of the key actors in orchestrating a larger price manipulation movement.
“I think [the Fed] is working with the bullion banks and I think that they don’t necessarily communicate directly with the bullion banks, they can do it through the BIS [Bank of International Settlements] and give them instructions to sell futures, and then that’s executed through the bullion banks,” he said.
Giustra concedes that the authorities behind this price manipulation have not left a clear trail of evidence for their actions.
“You’re never going to find a smoking gun on this. That’s the problem. I think, years from now in hindsight, we will have seen what they were up to, but they’re not going to leave you a smoking gun to find. There’s only circumstantial evidence. I just look at it from the trading perspective, I see what’s happening in trading and it doesn’t make any sense what’s going on,” he said.
Importantly, theFederal Reserve can’t keep manipulating and suppressing the gold price forever,Giustra said…
Once China releases a gold-backed central bank currency, the manipulation will likely fade and the price of gold will “see a new low,” he said.
Currently, countries around the world are engaged in what Giustra calls a financial war.
“The financial war between countries had already started. It was already simmering before this hot war in Ukraine and now it’s full on,” he said. “We’re in a global financial war. This is war. The sanctions were an act of war if you look at it from the perspective of being sanctioned. So, there’s a war taking place and the U.S. is fighting that war in any way that they can. The last thing that the U.S. need is a $3,000 gold price, because that’s just going to alert everybody that there’s a problem.”
All of this makes the current global monetary system unsustainable, and it is likely to see a hard reset, Giustra added…
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https://www.kitco.com/news/2022-05-05/Gold-price-is-manipulated-by-the-Fed-suspects-mining-tycoon-Frank-Giustra-but-suppression-can-t-last-forever.html