GATA has obtained an IMF report from 1999, which reveals that over 80 central banks had lent at least 15% of their official gold reserves into the market. This gold was lent to the primary dealers, who turned around and dumped the bullion on the market to raise capital, and then plowed the capital into interest bearing debt of the issuing governments. Price of gold suppressed, free arbitrage for the bullion banks/primary dealers…pretty much a huge win/win all the way around….provided no one ever decides they want their phyzz back.
In the words of Montgomery Gentry….Like all the good things that ain’t never coming back….IT’S GONE.
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Dear Friend of GATA and Gold:
A study by the International Monetary Fund in 1999, obtained last week by GATA’s researcher R.M., reported that more than 80 central banks had lent 15 percent of official gold reserves into the market and that central banks then lending gold included the German Bundesbank, the Swiss National Bank, the Bank of England, the Reserve Bank of Australia, and the central banks of Austria, Portugal, and Venezuela.
The IMF study, commissioned as the agency pondered selling some of its own gold, emphasized the lack of transparency in the gold market and the secrecy demanded by central banks.