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There are three major gold conspiracies.
Conspiracy #1: The U.S. Government’s gold reserves don’t exist.
During World War One and Two, America acquired gold from countries buying military supplies. The U.S. dollar then became the world reserve currency, backed by gold reserves. Until the break from the Gold Standard in 1971, most countries of the world trusted that the United States had the gold to back the currency. But the last actual audit of gold occurred in 1953 when no outside experts were permitted and only 5% of the gold was tested. France was one country that did not trust the U.S. Dollar was truly backed by gold, especially after the massive spending for the war in Vietnam; that’s why they started redeeming their dollars for gold.
In 1946 the U.S. had two thirds of the world’s gold; but from 1959 to 1971 it lost 50% of the gold supply. At this point the government reported reserves around 8 thousand metric tons where they still officially sit. However in 2012 when Germany asked for 300 tons of its own gold stored in the United States, after a year only 5 tons were given with 30 to 50 tons expected for 2014. This looks to miss their 2020 schedule by a long shot. This was after the U.S. refused to let the Germans come view their own gold at the Federal Reserve Bank of New York.
Counterfeit gold bars have been found in the U.S. and Europe and some claims that even bars tested in China were found to have tungsten cores that originated from Fort Knox.
Central banks use gold swaps and leases that are believed to trade gold that doesn’t exist or that is owned by multiple entities at the same time. This leads us to…
Conspiracy #2: The World Gold Price is being manipulated downward.
Former Fed chair Alan Greenspan said the U.S. would lease gold to keep down the price. Since 1999 central bankers have stated keeping gold price down as a goal (Sir Eddie George, Bank of England September 1999)
For most gold investors, the manipulation of the price of precious metals is obvious. Almost everyone who buys physical gold and silver believes that big banks and governments have a vested interest in keeping prices down to support their fiat currencies. This manipulation hides true inflation that historically would express itself in the gold price. Manipulation is done by rigging the market with massive amounts of “paper” gold that doesn’t exist; throwing true supply and demand out of balance.
At a CFTC hearing in 2010 it was confirmed that paper contracts traded on the London bullion market represent 100 times or more the amount of underlying physical asset available. Bullion banks are said to hold short positions to hedge trades.
In recent years a number of nations have been scrambling to repatriate their gold holdings that were stored in other nations. Germany, The Netherlands, Finland, Venezuela and others have all started repatriating gold in the last five years. Furthermore, eastern countries like Russia, China and India have been buying gold in record amounts. Could they be doing this because the gold price is suppressed?
Developing countries especially benefit on cheap and constant supplies of commodities to maintain their economic growth. Industrial metals like silver could see price spike from a supply shortage if the price is really manipulated downward the same way as gold. It is hard for prices to remain under market value with record breaking physical deliveries to countries. But why are countries buying record gold?
Conspiracy #3: China plans to establish a Gold backed currency
China could use a new Gold Standard to supplant the Dollar and United States’ power in the world.
The U.S. had the world’s largest economy since 1872. It had a Gold standard until 1971. China has already reached par with the largest economy. The IMF Projected that China will be 20% larger than the United States by 2019.
Many countries are worried about another financial crisis, so it makes sense they’d be open to a sound money global monetary system. The fact that China and similar nations have been steadily increasing their gold holdings, some even believing they’ve been secretly importing more gold than it has officially announced, gives some evidence to this possibility.
China is leading a group of emerging countries called the BRICS to start a new development bank to rival the IMF. Their arrangement with fellow nations Brazil, Russia, India and South Africa have begun annual meetings just a few years ago.
Having witness and been victim to the 2008 financial collapse caused by the American world hegemony, the newest superpower is surely striving to work out a new system not subject to U.S. influence and risks.
In the last five years China has greatly ramped up its increase of gold reserves. The country is the world’s largest producer yet it retains all the gold it produces making it also the world’s largest gold consumer. They are also the largest gold importer by many estimates.
No matter their intentions, China owning a massive gold holding hedges against a future where the Dollar loses its value. All three of these conspiracies can definitely be tied together.