We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K. - Eddie George, then Governor of the Bank of England, 1999That quote was Eddie George in reference to the reason why he sold half of England's 800 tonne gold reserve. Looking back, the sale was a colossal financial failure for England as the announcement of it drove the price of gold under $300 and ounce and most of the gold was sold well under $300/oz. England will never get that gold back unless they are willing to pay a price that would be many multiples of the current market price for an ounce - or if they confiscate what remains in GLD...
The manipulation of the gold market by the U.S. Government and the Federal Reserve has been going on for decades. It intensified after the Bretton Woods Treaty established the dollar as the global reserve currency. Since the Fed rolled out its QE program, its manipulation of the gold market has ramped up to the point at which it has become obvious to anyone involved in the markets and who has half a brain.
Paul Craig Roberts has been working hard to write articles which expose the truth about how the Government is systematically dismantling the U.S. Constitution and Rule of Law and replacing them with a system of political and financial repression. He invited me to write an article with him on how the Fed/Government manipulates the gold market for the purpose of defending QE and the dollar. Here's the link:
The Hows and Whys of Gold Manipulation
Keep in mind that the article is read world-wide and translated into several different languages, so we had to do our best to explain securities markets concepts in a manner which would be accessible to anyone not familiar with how securities and bullion markets operate.
Just like every other instance in history of Government intervention in markets and economies, this scheme has created economic dislocations and severe adverse consequences. When it ultimately fails, the collateral damage caused from this will impact everyone.
Faith is belief in something without evidence. With all the evidence available, anyone who refuses to believe that the gold market is manipulated is making a faith-based judgement.