The Bank For International Settlements is most commonly known as “the central bank for central banks”. What it has actually meant (on a practical level) is that the BIS has been the great facilitator of international money-laundering; given its above-the-law status in Switzerland, where its premises are sovereign territory.
Thus when I spotted an item at LeMetropole that GATA’s Chris Powell was doing some investigating of the bank’s role/connection to gold-manipulation I immediately tuned in. Chris asserts that as a replacement for the official “gold pool” which existed in the 1960’s (whose express purpose was to keep the price of gold fixed at $35/oz) that the BIS has been operating a “secret gold pool” in the years since.
He provides an assortment of anecdotes on the BIS which GATA has accumulated (past and present), which make a pretty good case for his accusation, most notably a quote from the former President of the BIS; who complains in 1983 about the tedious meetings of “the Gold Pool”.
Why have a secret Gold Pool when the bankers had previously worked to manipulate the market openly? Because in the immortal words of ex-Goldman Sachs banker Jeffrey Christian, “…it’s much more effective if people don’t know what you’re doing. They only see the effects…there are reasons why people don’t want the market to see them coming…”
In other words, if you want to manipulate the price of gold; the last thing you want to do is to announce that intention publicly (and in advance). Much better to do it secretly, where you can ambush the market – and get more “bang” for your manipulation “bucks”.
“Has the BIS gold pool succeeded he London Gold Pool?”
Dear Friend of GATA and Gold:
An inquiry tonight about the Bank for International Settlements led your secretary/treasurer back into GATA’s documentation archive…