In a recent interview, Bill Murphy of the Gold Anti-Trust Action Committee (GATA) predicted that a tipping point is near that will end the Gold Cartel’s suppression of gold and silver prices, leading to $3,500 gold and $100 silver.
Greg Hunter of USA Watchdog.com interviewed Murphy, who has extensive hedge fund experience, including with Bridgewater, one of the largest hedge funds in the world.
The US Justice Department recently granted UBS (NYSE:UBS) immunity in a criminal investigation of “manipulation of, or fraud in” the gold and silver markets.
Murphy said manipulation has been found in “the energy market, the mortgage market, the interest rate market, the currency market,” but “probably the biggest of all…is what they’re doing in the gold and silver markets.”
Why is gold being manipulated?
“Gold is looked at as a barometer of US financial market health,” Murphy said. “When gold goes up sharply…it’s always bad for the bankers and the politicians in power….So many years ago they decided they were going to keep the gold price under control as much as they could.”
Murphy explained that in 1994, Allan Greenspan and Will McDonough of the New York Fed joined the BIS (Bank for International Settlements). This was prohibited under US law at the time. And that was at about the same time that Robert Rubin, the Treasury Secretary who came from Goldman Sachs, started leasing gold to suppress the gold price as a foundation of the strong dollar policy. “The essence of it was to rig the gold price because it affects so many markets, like the dollar, like the bond market, and it’s become a bigger and bigger deal. The more they suppressed it, the more they’re getting themselves in bigtime trouble…because they are going to run out of physical gold and silver as time goes by, and the market will go bonkers.”
Murphy calls the manipulators the Gold Cartel, made up of the Fed, the Treasury, the big banks, the BIS, and other central banks. He said, “They keep going through the supply of central bank gold to keep the price down….At some point it’s going to hit a tipping point, the same with silver, and the thing is going to go crazy.”
Murphy said that if gold had just kept pace with inflation, “it would be double what it is today. That’s how artificially low the price of gold is today, and so is silver. And once they lose control of silver, it’ll go from $22 to $100 very fast….It’s astounding what they’ve been able to do, and they’re very good at it.”
“Complex derivatives have aided them in their schemes,” Murphy said, but “They’re afraid that when the gold market convulses it’s going to set off a derivatives nightmare in the interest rate markets and so on….[with] one default after another [like 2008]….Because derivatives have exploded, something like $250 trillion, they don’t know what the outcome could be if they start getting this kind of reaction. So they are…maniacal in trying to keep the price of silver and gold aligned.”
In relation to the current investigation, Murphy said, “I am so skeptical after all these years, and it’s a question of where they go with this. If they are just talking about the gold fix itself—big deal. The ramification of how they are interfering with the markets all the time is the real issue. Why are they doing this now? Well, probably because it is so obvious, and they been doing it in so many other markets they feel compelled to do something. . . . This is going to effect a lot of people, if I am correct, when this market blows up. Maybe they see something coming with allocated accounts and the gold isn’t there. . . . They know it’s coming, and maybe they are trying to preempt something here so they don’t look so bad.”
With the massive printing of money and low interest rates, gold and silver should go up. Art, real estate, and the stock market all are going up, yet gold and silver are not. “It makes no sense,” Murphy said, “unless you know what GATA knows….As frustrating as it is to stay with it, these markets will explode….This can’t go on too much longer.”
Murphy said that gold should be $3,500 and silver $100. When gold hit $1,900, he said, the cartel got more aggressive. When they start to lose control next time, the move up will be much faster than in the past, although “We don’t know when that tipping point will hit.” He did predict, however, that “When they lose control of silver, that will be the tipping point, then gold will follow.”
When asked about fears of the government confiscating gold, Muphy said, “I think the rest of the world would laugh at us. I give it zero chance….The price would go bananas.” He argued that the cartel’s goal is to keep gold out of the limelight, so why confiscate gold and put it right in the center of the limelight?