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Palgrave Macmillan

The Gold Cartel

Government Intervention on Gold, the Mega Bubble in Paper, and What This Means for Your Future

ISBN 9781137286420
Publication Date October 2013
Formats Hardcover Ebook (EPUB) Ebook (PDF) 
Publisher Palgrave Macmillan

In times of financial crises and imminent sovereign defaults, gold is the investment on everyone's lips. As a safe investment, one could traditionally rely on gold markets for good, stable performance, however in recent years, they have seen surprising volatility and price fluctuation, with no visible reason as to why.

In The Gold Cartel, seasoned commodity analyst Dimitri Speck illustrates in detail how central banks have secretly manipulated the price of gold in an effort to calm financial markets and control inflation. Using quantitative analysis of historic gold market patterns, the author shows how and when central banks intervene in gold markets, and how this has affected price movement and impacted the global financial markets, leading to the creation of a mega-bubble.

Since the abolition of the gold standard in 1971, the indebtedness of the global economy has increased rapidly and has now reached levels way beyond comprehension. What are the mechanisms that have led us to this mega-bubble? Is it possible to avoid a catastrophic outcome like deflation or hyperinflation? And how does this relate to the gold markets? This book has the answers.

DIMITRI SPECK is commodity analyst and chief developer of trading strategies for asset manager Staedel Hanseatic, where he is responsible for the Stay-C commodity fund that won the Hedge Fund Journal's award as best European commodity fund. He specialises in economic history and empirical measurable market patterns, and in 2001 he discovered, with the help of intraday anomalies, that central banks have been systematically intervening in the gold market – research that formed the basis for this book. Speck holds a patent for an iterative financial market, is the author of numerous articles on the gold markets and other financial topics, and is publisher of the financial website www.seasonalcharts.com.

Preface
1. Why Gold?
2. The Crises of the 1990s
3. The Strange Behavior of Gold During Crises
4. The Strange Intraday Behavior of Gold
5. The First Statistical Studies
6. Statistical Proof and Dating of Gold Interventions
7. Intraday Movements of the Gold Price 1986-2012
8. Gold is Different
9. Means of Gold Market Intervention I: Sales
10. Means of Gold Intervention II: Gold Lending
11. The Gold Carry Trade
12. Coordination of Private Banks and Central Banks
13. Giving the Game Away: Central Bankers are Human Beings Too
14. The Books are Silent
15. The Miraculous Gold Multiplication
16. How Much Gold is on Loan Worldwide?
17. Means of Gold Intervention III: Intervention through the Futures Market
18. The Gold Pool and Other Gold Market Interventions before 1993
19. August 5 1993, 8:27 a.m. EST: The Beginning of Systematic Gold Market Interventions
20. The Decisive Fed Meeting
21. Greenspan Ponders Gold Market Interventions
22. Phases of Gold Price Suppression
23. Shock and Awe
24. The Financial Market Crisis of 2008 and the Euro Crisis of 2011
25. Strong Dollar and Weak Mining Stocks
26. Interventions in the Silver Market
27. Swapped Bundesbank Gold and Other Mysteries
28. Who Intervenes?
29. The Mystery of May 18 2001, 12:31
30. The Effects of Gold Price Suppression
31. The Wonderful World of Bubbles
32. Have Many Mini-Bubbles Created a Mega-Bubble?
33. Money or Credit
34. Possible Scenarios for the Future
35. Back to Gold

Reviews

"From my studies in economic history I am not familiar with a single instance where a market manipulation has been successful in the long-term. Governments and their Agencies always impose price support or price suppression measures (for instance price and wage controls) but market forces always dispose of these interventions by prices collapsing through support levels or soaring though the temporary controlled prices. It is my opinion that soaring gold prices in future will completely destroy the little credibility central banks still enjoy. This is a very good and well researched read." - Marc Faber, Editor, The Gloom Boom and Doom Report
"The Gold Cartel is a brisk, articulate and convincing read. Even so, it remains extremely sound. A miracle!" - Professor Heinz Christian Hafke, former German Bundesbank Director
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