Setting the worldwide SPOT price of gold: the method


The SPOT price of gold is set in a created opaque market organization with the central bank community in the lead creating 89 percent of the yearly total market volume through so called gold swaps.

The price discovery scheme for the worldwide SPOT price of gold



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The IMF overlooked more than 3.000 ton gold from 2009 till 2015

19 August 2017

In their annual report 2015 the IMF stated that the world official holdings in gold are 30.506 ton (980.800.000 ounces) as per 2009. This is very remarkable, because in their annual report 2014 the world official holdings in gold were 27.346 ton (879.200.000 ounces). In the annual report 2015 there is no explanation for the difference of 3.160 ton (101.600.000 ounces) with a retrospective effect to 2009.


So in 2015 the official gold holdings 2009 appear to be 3.160 ton higher than before (is 11.6 percent of the total world gold holdings in 2009). It is not only applicable for 2009, but also for 2010 up and till 2014 as follows:

These overlooked tons were added in their annual report 2015 in the specification of the international reserves (appendix 1) retrospective 2009 up to 2014.



IMF Annual Report 2015 the changed figures


IMF Annual Report 2014 the original figures


How the IMF could overlook more than 3.000 ton of gold in the world official holdings of reserve assets is a big question? It is a very substantial difference.

Which country is the owner of the more than 3.000 ton of gold?



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The LBMA is a ploy of the Central Bank Community

This article is about the way the Central Bank Community manipulates the price of gold and the role of the LBMA within. We describe some of the signs that the Central Bank Community manipulate the price of gold and that they are using the LBMA to reach their goal. Is the manipulation of the gold price a classic case of Diffusion of responsibility because so many organizations are involved and avoid taking responsibility?


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Gold and the CIA go back a long time


Is the CIA involved with the world gold market?


The involvement of the CIA with the world gold market emerges clearly out of recent declassified documents. The first document we describe is the most important one. This document makes the connection between losing influence in world affairs and the price of gold. The information of the CIA about the world gold market seems to be mostly on a strategic level, like

  • lose influence world affairs and gold
  • controlled sell and buy official gold
  • controlled sell South Africa production
  • analyze violations Washington Agreement
  • approach to report virtually unchanged gold reserve by sell of official gold
  • analyze gold price movements and manipulation thereof
  • positioning London as focal point of the world gold market
  • research regarding (future) gold production and financial position of a country

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Gold Price Intervention Circuit Diagram and Determinants Intervention Policy

This is an article about abuses in the gold market. It is meant to be for readers, who are well informed and interested in the gold market and monetary items, such as student (central) bankers, politicians, financial analists, supervisors, etc.

Based upon study we (re)constructed the Gold Price Intervention Circuit Diagram. The purpose for the (secret) interventions is the stabilization of the exchange value of the US dollar. There are many actors involved by the interventions vary from politicians, central bankers, institutions like the BIS, IMF and LMBA, Market Makers on the OTC-market (commercial banks), and Clearing Members LPMCL. We call an intervention secret if it has not been reported to market participants at the latest on the day the intervention was carried out by the one or two involved central banks, or not being reported at all.

It is obvious that the central banks within the BIS network handle an intervention policy for the price of gold. We (re)constructed some determinants of the (secret) Intervention Policy on the price of gold by central banks. The interventions set the Spot Price of gold.

The regulatory authorities seem to look away.

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Behind the Spot Price of Gold

Many people think that the price of gold for buyers and sellers is determined through the LMBA Gold Price Auction (formerly LBMA Gold Fix). This is not correct.

The LMBA Gold Price Auction does not set the price of gold and thus all other gold-related products for the whole day. In fact, the LMBA Gold Price is simply the price agreed to at that point in time (10:30am and 3:00pm); within minutes, the price of gold will fluctuate again based upon the so-called London Spot Price.

The London Spot Price is the basis for many transactions in gold. Actually it is a quotation made by dealers based on US dollars per fine ounce gold.

The London Spot Price is actually the quotation price of gold between Citi, Goldman Sachs, HSBC, JPM, UBS, Bank of Nova Scotia,  ICBC, Merrill Lynch, Morgan Stanley, Societe Generale and Standard Chartered Bank based upon their activity in the hardly regulated OTC market.

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The BIS-network dupes the gold mining industry

In our paper from July 20, 2015 we concluded that JPM in cooperation with the BIS controls the dollar gold price by using their very dominant position in gold derivatives in the US Banking System. JPM held during 1999 – 2014 an average of 3.262 paper metric tons gold (derivatives) available for interventions on the development of the dollar gold price with the BIS as counterparty. Furthermore we concluded that the paper volume sets the dollar gold price and that there is almost no influence on the dollar gold price from the physical supply and demand. Overall the conclusion is that there is no free market for gold.

In our paper from October 7, 2015 we explained that JPM and the BIS are operating agents for the BIS network to maintain the confidence in the dollar and therefore manipulate the dollar gold price. We spoke about the artificial price drop in 2013 and the possible following dishoarding by private holders.

In this paper we will analyze the financial position of three leading mining companies considering the manipulated dollar gold price. We analyzed the annual statements of Barrick, Newmont and Goldcorp with their key business in gold mining (other products are by-products) and a combined market-share 2015 of 15,3% on gold mining worldwide. We concluded that there is in retrospect a combined average dollar gold price 2013 – 2015 needed of $ 1.890 per ounce to get break even (= the point of balance making neither a profit nor a loss). The realized combined average dollar gold price 2013 – 2015 is $ 1.274 per ounce. On any sold ounce gold the combined three mining companies loose more than dollar $ 600 per ounce, or 48%. It goes without saying that they struggle to stay in business.

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Don’t be fooled: The US is facing a national debt crisis

The US National Debt is the sum of all outstanding debt owed by the US Federal Government. The debt is an accumulation of federal budget deficits. Congress usually raises the national debt ceiling to prevent the negative consequences of a debt default.  In the short run, the economy and voters benefit from deficit spending. America’s debt is the largest in the world for a single country. As of December 17th, 2015 the national debt is $ 18,796 billion equals to 105% of GDP. So the debt is more than the US produces in a whole year. That normally tells investors that the country might have problems repaying the debt. Furthermore a study of Reinhart and Rogoff (1) shows that high public debt (> 90% GDP) stifle economic growth. This is a new and worrying occurrence for the US.


In this paper we explain that the Fed made two camouflages (ZIRP – Zero Interest Rate Policy and printing money) so that the US Federal Government can keep up the appearances of being on a strong fiscal path for the majority of the population. Without the Fed camouflages the US Government would probably be comparable with Greece. The federal budget and the US National Debt are not under control. The Fed won some time through their camouflages . The higher US debt and low interest rules out (further) loans from other countries and probably intra governmental holdings. A default of the Federal Government would dramatically affect the economy.


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Outspoken speech of BIS official William R White (2005): The fifth objective of Central Bank cooperation is to influence the price of gold

William R White, Head of Monetary and Economic Department at the BIS, held an opening speech at the fourth BIS Annual Conference, on 27 – 29 June 2005 – while celebrating the 75 years existing of the BIS (1930 – 2005).


Mr White mentioned the five intermediate objectives of Central Bank cooperation. The fifth objective was the joint effort of Central Banks to influence the price of gold and foreign exchange.

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Don’t be fooled: The SDR is designed as a rescue operation for the US dollar

…Triffin dilemma …Loss of confidence in the US dollar…

From the 1960s, there was a widespread concern of the sustainability of the Bretton Woods system of using national currencies as reserve assets. This was most closely associated with the Triffin dilemma, witch predicted a loss of confidence in the gold value of the US dollar as the value of liquid claims on the United States in the form of dollar foreign exchange reserves increased. Triffin argued for the need to choose the rate of global reserve growth collectively rather than allow it to be a by-product of national decisions.


The SDR Substitution Account

…SDR…Away from the dollar…

The IMF created the SDR (Special Drawing Rights) Substitution Account in 1969. The core idea of the SDR is that the SDR Substitution Account Central Banks allows to diversify their existing dollar reserves in a one-time conversion away from the dollar into IMF’s SDR, comprised of the US dollar, European euro, Japanese yen and British pound, in an off-market transaction, so as not to depress the dollar’s exchange rate.


By public introduction careful terminology avoided the label of reserve asset and suggested that the SDR was designed to add to rather than replace existing (dollar) reserves. This was pure cosmetic.


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