The Gold Cartel: Government Intervention in Gold, the Mega-Bubble in Paper, and What This Means for Your Future

The Gold Cartel is an insightful and thought-provoking analysis of the world market for gold, how it works, and what influences gold price. But it also lends insight into something more disturbing - the organized intervention in the gold markets by Central Banks. In times of financial crises and imminent sovereign defaults, gold is the investment on everyone's lips. As a safe investment, one could traditionally rely on gold markets for good, stable performance, however in recent years, they have seen surprising volatility and price fluctuation, with no visible reason as to why. In The Gold Cartel, seasoned commodity analyst Dimitri Speck illustrates in detail how central banks have secretly manipulated the price of gold in an effort to calm financial markets and control inflation. Using quantitative analysis of historic gold market patterns, the author shows how and when central banks intervene in gold markets, and how this has affected price movement and impacted the global financial markets, leading to the creation of a mega-bubble. Since the abolition of the gold standard in 1971, the indebtedness of the global economy has increased rapidly and has now reached levels way beyond comprehension. What are the mechanisms that have led us to this mega-bubble? Is it possible to avoid a catastrophic outcome like deflation or hyperinflation? And how does this relate to the gold markets? This book has the answers Front Matter....Pages i-xix Why Gold?....Pages 1-4 The Crises of the 1990s....Pages 5-7 The Strange Behaviour of Gold during Crises....Pages 8-15 The Strange Intraday Behaviour of Gold....Pages 16-18 The First Statistical Studies....Pages 19-22 Statistical Proof and Dating of Gold Interventions....Pages 23-26 Intraday Movements of the Gold Price 1986–2012....Pages 27-33 Gold is Different....Pages 34-36 Means of Gold Market Intervention I: Sales....Pages 37-40 Means of Gold Intervention II: Gold Lending....Pages 41-43 The Gold Carry Trade....Pages 44-45 Coordination of Private Banks and Central Banks....Pages 46-49 Giving the Game Away: Central Bankers are Human Beings Too....Pages 50-51 The Books are Silent....Pages 52-55 The Miraculous Gold Multiplication....Pages 56-60 How Much Gold is on Loan Worldwide?....Pages 61-75 Means of Gold Intervention III: Intervention through the Futures Market....Pages 76-81 The Gold Pool and Other Gold Market Interventions before 1993....Pages 82-92 5 August 1993, 8.27 a.m. EST: The Beginning of Systematic Gold Market Interventions....Pages 93-98 The Decisive Fed Meeting....Pages 99-107 Greenspan Ponders Gold Market Interventions....Pages 108-115 Phases of Gold Price Suppression....Pages 116-121 Shock and Awe....Pages 122-130 The Financial Market Crisis of 2008 and the Euro Crisis of 2011....Pages 131-139 Strong Dollar and Weak Mining Stocks....Pages 140-143 Interventions in the Silver Market....Pages 144-150 Swapped Bundesbank Gold and Other Mysteries....Pages 151-153 Who Intervenes?....Pages 154-169 The Mystery of 18 May 2001, 12.31....Pages 170-179 The Effects of Gold Price Suppression....Pages 180-190 The Wonderful World of Bubbles....Pages 191-198 Have Many Mini-Bubbles Created a Mega-Bubble?....Pages 199-220 Money or Credit?....Pages 221-231 Possible Scenarios for the Future....Pages 232-261 Back to Gold....Pages 262-267 Back Matter....Pages 268-302