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Gold: Violation of position limits shows latest metals smash was government operation
London metals trader Andrew Maguire, interviewed Thursday by Chris Marcus for Arcadia Economics, said bullion banks exceeded position limits in their gold and silver trading during the recent smashdown of metals prices.
So, Maguire concludes, to be exempted from the rule, the banks had to be trading on behalf of governments -- just as your secretary/treasurer speculated earlier today:
Of course these assertions fit perfectly with the longstanding refusal of the U.S. Commodity Futures Trading Commission to answer GATA and even a member of Congress as to whether the commission has jurisdiction over manipulative trading by brokers acting for the U.S. government or other governments, or whether such trading is authorized by the Gold Reserve Act of 1934, as amended since then, and conducted through the Federal Reserve or the Treasury Department's Exchange Stabilization Fund and the intermediary brokers they use:
Maguire adds that physical demand by governments and their bullion bank agents is starting to create a put under the gold market.
Gold futures longs who agree to settle for cash instead of insisting on delivery are being paid premiums of 2 percent or more, Maguire says.
Maguire says the pending "Basel III" financial standards proclaimed by the Bank for International Settlements and taking effect June 28 will devalue unallocated gold and upvalue allocated physical gold and thus put pressure on banks belonging to the London Bullion Market Associaiton to trade unallocated gold for real metal.
This, Maguire says, will compel the exchange-trade gold fund GLD to switch its unallocated gold for real metal as well.
Not surprisingly, Maguire says, the LBMA is trying to delay application of "Basel III" rules to unallocated gold.
When the "Basel III" rules take effect, Maguire says, the gold price will become the price of the exchange of physical gold for immediate delivery -- no more paper games. He expects this to boost the gold price by at least 20 percent.
Maguire's interview with Marcus is 37 minutes long and can be viewed at YouTube here:
Chris Powell, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. CPowell@GATA.org
