Alan Greenspan made a striking testimony on July 24, 1998 regarding the regulation of OTC derivatives before the Committee on Banking and Financial Services. Striking viewed out of the present knowledge of the gold market.
This paper is a follow-up on “Is de dollar gold price controlled by JPM in cooperation with the BIS?” dated July 20, 2015. We explain 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. Furthermore we found a strong correlation between the gold price and the international reserves. In fact there is a variable gold standard on the so called free market. We continue with the artificial price drop in 2013 and the possible following dishoarding by private holders. At last we describe some public striking issues regarding the BIS network.
In this paper we conclude 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 conclude 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. At last we ask ourselves of JPM and the BIS are operating agents for a higher goal and conclude that there is no free market for gold.