Wednesday, July 25, 2012

Former Treasury Official Suspects Fed Manipulating Gold and Silver

Paul Craig Roberts, who was an Assistant Secretary of the US Treasury during part of the Reagan Administration, believes the Federal Reserve may be manipulating gold and silver prices.

During an interview with Matterhorn financial journalist Lars Schall , Roberts said:
I suspect that all markets, not only bonds, but also equity and bullion markets, are rigged in order to maintain the Fed’s low interest policy.
The interview continued on this way:
L.S.: Do you think the gold market is a free market – that is, free of government sponsored interventions via Western central banks / bullion and investment banks?

PCR: I suspect that the Federal Reserve is manipulating the gold and silver markets in order to prevent its low interest rate policy from undermining the value of the US dollar. It is easy to offset rising prices of bullion due to physical demand by selling shorts in the paper market.

L.S.: Is a free market possible with “the invisible hand“ of the Plunge Protection Team?

PCR: I suspect that all markets, not only bonds, but also equity and bullion markets, are rigged in order to maintain the Fed’s low interest policy. In the July issue of Gerald Celente’s Trends Journal, I point out that all investment avenues are now rigged.

Consider, for example, the bullion market. If gold and silver prices had been permitted to continue their 2011 rise, the corresponding decline in the value of the dollar would have affected the price of debt instruments, and the Fed would not have been able to keep bond prices high in the face of dollar decline. All indications of moves away from the dollar, whether stock market declines or rise in gold and silver prices, are offset by purchases of stock index futures or by shorts of bullion.


  1. I never thought I'd be saying this but, "Go Fed, go!"

    The more they manipulate, the more I can buy at low prices. Also the more they manipulate, the higher gold and silver will ultimately go when it blows up in their face.

    1. Dear Anonymous,

      I'm with you.



  2. I for one am glad they are manipulating it if that's actually the case. It gives me more time to accumulate more.

    There's no way they can do it in perpituity-the worst they can do is outlaw holding it again once they lose control and then I'll just take it to another country.

  3. What nonsense. Shorts must be covered eventually.

    1. how about rolled over and more added
      how about selling massive amounts in minutes to take out every bid causing a waterfall drop and causing the weak longs to sell also , thus adding to the selling on the way down

    2. The Fed can just print money to cover the shorts. They don't have to buy gold, thus raising its price.

  4. Need it to be pointed out that Fed can cover any shorts as long as they have the printing press?