Speaking on the Keiser Report gold analyst Alasdair Macleod has dropped a bombshell — between Feb 28 and June the Bank of England’s gold vault was emptied of a massive 1300 tonnes of gold — enough to explain why the gold price fell so dramatically over that timeframe. Jump forward to 12 min 58 sec:
The gold does not necessarily belong to the UK (which only owns 310 tonnes) — it is the sovereign gold of many nations who must have agreed on a coordinated plan to lease it out — or sell it. Those countries aren’t necessarily going to get the gold back now that demand is surging. It was a massive gamble, and it looks to have backfired in a stupendous way. China and India have ramped up their gold purchases to unprecedented levels. The gold has gone East and will not come back for many decades or even centuries.
The implication is that the intervention was a one-off and cannot be repeated. The gold price will recover and then some. Ben Bernanke said he didn’t pretend to understand the gold market, well now he and his dog shouldn’t pretend to NOT understand the gold market — the price is manipulated like no other and for very important reasons. But that manipulation cannot last and the price action to come as a result will be something to behold.