Jason talks about Stephanie Pomboy of Macro Mavens wondering recently why gold prices are are not well above $1700/oz given the current state of the global economy and the policy responses by central banks & governments. The answer why is that a lot of paper price manipulation and rules changes have occurred in the last 8-9 weeks since the last week of March 2020 to prevent gold prices for going above $1800. Some of these rules changes include multiple changes of the margin requires for being long gold futures contracts and also what types of gold bars are even allowed to be delivered.
We also found out from Ronan Manly in the last few weeks that the Bank of England (BOE) had to bailout HSBC Bank, custodian of the GLD to prevent a default on the LBMA: Amid London gold turmoil, HSBC taps Bank of England for GLD gold bars https://www.bullionstar.com/blogs/ron...
Apparently, HSBC Bank lost $200 million dollars in a single day of gold trading on exchange for physical (EFP) mark to market losses: HSBC lost $200 mln in a day on paper as coronavirus dislocated gold market https://mobile.reuters.com/article/am...
Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.