Published on Friday, 18 October 2013
Written by Fabrice Drouin Ristori
If you study the gold and silver market long enough you can’t but acknowledge that the precious metals are manipulated. Last friday drop (october 11th) in gold was another example : 2 millions ounces of paper gold were sold in less than 3 minutes (read the explanation here) at a time when the market is the most illiquid and when the CFTC (US market regulator) is closed due to US government shutdown.
The manipulation that triggered a 2 years correction can be very difficult for gold investors to experience, unless they recognize that it create an opportunity to acquire physical gold at an artificially low price.
The question all gold investors have in mind is “When will the manipulation end ?”. In the interview below, James Rickards, author of the bestseller “Currency Wars : The making of the next global crisis” give some very interesting answers you won’t read in the mainstream media. It is high level information from an an expert who anticipated long ago what’s happening today.
With China now openly calling for the end of the dollar as the international reserve currency, we are getting closer to major events that will change our international monetary system.
Here is the third interview with James Rickards.
James Rickards is the author of the national bestseller, “Currency Wars: The Making of the Next Global Crisis” and a Partner in Tangent Capital Partners, a merchant bank based in New York. He is a counselor and investment advisor and has held senior positions at Citibank, Long-Term Capital Management and Caxton Associates. In 1998, he was the principal negotiator of the rescue of LTCM sponsored by the Federal Reserve. His clients include institutional investors and government directorates. He has been interviewed in The Wall Street Journal and has appeared on CNBC, Bloomberg, Fox, CNN, BBC and NPR and is an Op-Ed contributor to the Financial Times, New York Times and Washington Post. Mr. Rickards is a visiting lecturer at Johns Hopkins University and the School of Advanced International Studies, has delivered papers on risk at Singularity University, the Applied Physics Laboratory and the Los Alamos National Laboratory and has written numerous articles on risk management. He is an advisor on capital markets to the Director of National Intelligence and the Office of the Secretary of Defense. Mr. Rickards holds an LL.M. (Taxation) from the NYU School of Law; a J.D. from the University of Pennsylvania Law School; an M.A. in economics from SAIS and a B.A. from Johns Hopkins.
Follow James Rickards on Twitter : @JamesGRickards
Fabrice Drouin Ristori (FDR): Mr Rickards, thanks for accepting this interview. How long the manipulation of the precious metal markets can last ?
James Rickards: Central bank manipulation of gold markets can and will last until physical shortages become so acute that banks and exchanges can no longer deliver on futures and forward contacts when requested by customers. At that point, contracts will be terminated and exchanges will order that trading be conducted “for liquidation only” which means that futures customers can close out or rollover contacts, but they cannot receive physical delivery of gold.