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Ronan Manly: Bank of England report shows how central banks control gold price

Section: Documentation

3:03p ET Friday, April 28, 2017

Dear Friend of GATA and Gold:

Gold researcher Ronan Manly writes today that the Bank of England's new, more detailed gold vault holdings report shows how central banks control the gold market by providing "liquidity" and how the gold price is highly correlated with the dishoarding and addition of gold to the bank's vault, the price falling as gold is dishoarded and rising as it returns.

Manly modestly declines to emphasize that the bank's new report confirms that his recent estimates of the real metal supporting the London gold market were almost exactly correct.

While Manly welcomes the bank's increased transparency, he adds: "It would be more useful if the bank published a breakdown of how much of this gold is held by central banks and how much is held by bullion banks, along with the number of central banks and number of bullion banks that the data represents. Two distinct sets of data would be ideal, one for central bank custody holdings and the other for bullion bank custody holdings. The bank most likely would never publish two sets of data as it would show bullion bank gold storage activity for the whole world to see."

That is, if the markets -- such as they are -- knew the true location and disposition of central bank gold, trouble would be made for the surreptitious intervention of central banks in the gold and currency markets, just as was acknowledged by the secret March 1999 report of the staff of the International Monetary Fund:

Manly's report is headlined "Bank of England Releases New Data on Its Gold Vault Holdings" and it's posted at Bullion Star here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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