Dear Friend of GATA and Gold:
Evidence in the trial of the former JPMorgan traders convicted of gold market manipulation this week indicated that the bank long has been trading the monetary metal for central banks and the Bank for International Settlements, London metals trader Andrew Maguire says in this week's "Live from the Vault" program from Kinesis Money.
Maguire cites Bloomberg News reporting about the "spoofing" trial, highlighted in a GATA Dispatch on July 31 -- https://gata.org/node/22108 -- which said: "Another set of important clients" of JPMorgan "were central banks, which trade gold for their reserves and are among the biggest players in the bullion market. At least 10 central banks held their metal in vaults run by JPMorgan in 2010, according to documents disclosed in court."
Maguire construes this to mean that the "spoofing" of which the Morgan traders were convicted probably was coordinated with knowledge of central bank trading plans.
Noting GATA consultant Robert Lambourne's reporting on the rapid decline in the gold swap positions held by the BIS --https://gata.org/node/22127 -- Maguire adds that the bank, the gold broker for major central banks, is bringing itself into compliance with the recent "Basel III" rules restricting "unallocated" or "paper" gold positions, positions not fully backed by gold itself or equally strong collateral. These positions, creating a vast, imaginary supply of gold, backstopped by central banks, long have been the primary mechanisms of gold price suppression
Maguire sees central banks transitioning steadily from short to long gold and estimates that the BIS itself will have extricated itself from gold liabilities and be profiting from higher gold prices by the end of the year.
Maguire's comments on "Live from the Vault" come in a 43-minute interview with Shane Morand of Kinesis Money that can be seen here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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