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Gold Could Be The Next Libor Scandal

"Believe it or not, the global benchmark prices for gold and silver, the "London spot" prices, are not set by such old-timey folderol as "trading," but by a small cabal of European banks that get together twice a day and decide what they think the price of gold and silver should be.

If that sounds familiar to you, then you win the prize for staying awake through all of last year's tedious stories about the Libor scandal. The gold-pricing process is in fact akin to the process of setting the London Interbank Offered Rate, or Libor, a key short-term interest rate. In that case, a slightly larger group of banks sets Libor each day by self-reporting their borrowing costs, and it turns out they had constantly manipulated it for years and years.

The Commodity Futures Trading Commission thinks it's possible that something could also be amiss with the system for pricing gold and silver and has started asking around about it, the Wall Street Journal reports. It's not a formal inquiry yet; we're still just in the getting-to-know-you phase of the scandal, if that's what this is going to be."

http://www.huffingtonpost.com/2013/03/14/gold-libor-scandal_...



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SteveMT's picture

Gold price is not set by the reality of free market forces.

"The Commodity Futures Trading Commission thinks it's possible that something could also be amiss with the system for pricing gold and silver.."

Ya Think?

Remember Brooksley Born?

Remember Brooksley Born?

I'm not shocked at all, the

I'm not shocked at all, the big banks are in the business of market manipulation, its how they've accumulated most of their power, and they've been at it long before the US federal reserve note came into existence. At least they can't print an infinite amount of gold?

I am shocked, shocked! That

I am shocked, shocked! That the Rothschild's are fixing gold in the city of london.

http://en.wikipedia.org/wiki/Gold_fixing
(continuation of above article for more info)
http://en.wikipedia.org/wiki/N_M_Rothschild_%26_Sons

(Fyi - this is one of the things the Rothschilds were known for).

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