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Sept. 20, 2022 - Epoch Times
17:00
Central Bankers Are Secretly Hoarding MILLIONS of Pounds of Gold; Bankers Caught Manipulating Price
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This right here is the Federal Reserve, which is the central bank here in the United States.
And there is an equivalent to the Federal Reserve in almost every country throughout the entire world.
In fact, out of the 196 countries currently on this planet, only nine of them don't have a central bank.
And right now there's, you can say, an interesting phenomena.
Because on the one hand, you have central banks across the entire world, including the European Central Bank, you have the International Monetary Fund, you have the World Economic Forum, and so on.
All of these globalist institutions, they're all talking about creating a decentralized digital currency.
A form of digital currency that they could issue, track, restrict, and essentially use to control the citizens.
However, at the same time that these central bankers are talking about issuing centralized digital currencies, well, behind the scenes, they are actually doing something else.
They are purchasing massive, and I do mean massive, amounts of physical gold.
Just to give you a few examples, Poland's central bank is set to buy 100 tons of gold this year alone.
The Central Bank of Singapore quietly added 26 tons of gold to their reserves.
The Central Bank of Hungary has increased their gold reserves by a staggering 3,000% over the last three years.
The Central Banks of India, Russia, China, Ireland, and so on have all been accumulating gold.
France has repatriated all their monetary gold.
And even the Central Bank of Zimbabwe, in order to combat rampant inflation, they have begun to offer gold coins to their citizens and So on and so forth.
There are a ton of these examples.
And so you see, while on the one hand, these central bankers are talking publicly, as well as priming their citizens about getting ready for a centralized digital currency, sort of like a Bitcoin equivalent that they can issue, control, and track, on the other hand, they have been accumulating massive positions in physical gold bullion.
Now, the big question here is obviously, why?
What do they see that's making them accumulate so much gold?
And so in order to get an idea of what this all means and what exactly these central bankers are seeing in the near future, I got a chance to speak with Mr.
Max Baker, who is the Chief Operations Officer over at American Hartford Gold, which is one of the largest gold dealers here in America.
And also, by the way, just for full disclosure, they are my personal gold dealer.
I usually buy from them once a month, and they are a sponsor of this program.
But in my opinion, that actually only gives them more credence, given the fact that in the current political environment, sponsoring a program like Facts Matter and helping the truth get out to more people actually does require a company to be run by American patriots, which they are.
Regardless, being the chief operations officer, Max has a broad view of what's happening in the market.
And here's what he told us.
You know, central banks...
You've got to look at what they're doing, not what they're saying.
And central banks have always been a big fan of gold.
They know that it's the end-all, be-all, that no matter what happens over here, over there in the world, gold is going to have its value.
Venezuela is a great example of that.
Russia is a great example of that.
When inflation was roaring in Venezuela, it still is.
And when there's political turmoil over there.
You know, Russia went to him and said, hey, we'll help you out.
And Minnesota said, great, we've got all kinds of currency to send you.
And Russia said, no, we don't want that.
Well, we've got art to send you.
We don't want that.
You know what?
You do have a value that we want.
We want your gold.
They realized when everything is hitting the fan, that is the only thing of value still available.
And so do you believe that the fact that all these central bankers, they maybe have two competing visions.
Maybe they have the vision of this utopian future with the central bank digital currency and being able to control the volatility of money and all that, you know, by maybe putting expiration dates, et cetera, on these digital currencies.
But the reality is that they know that they need something that has that baseline, that everybody can accept, that is universally identified, and that's gold.
Is that what you think?
Absolutely.
Gold is the foundation for everything.
Gold is the only real money.
Everything else is just credit.
So what do you believe the future will be moving forward?
Because right now, a lot of people are discussing de-dollarization.
It's true.
It seems like, you know, the BRIC countries are expanding to maybe even include Saudi Arabia in the near future.
So it seems like there's already kind of becoming a unipolar sort of world that's moving away from the U.S. dollar.
What do you view gold's position moving forward to be in the world?
Well, and that's the beauty of gold.
You know, if If the dollar does lose its world reserve currency, there is going to be major volatility.
There's going to be shock waves throughout all fiat currencies.
And with that, the ultimate currency will be gold.
And, you know, you can imagine whether it's the Chinese one, whether it's The Euro.
To unseat the dollar as a world reserve currency, there's going to be some major volatility.
And I don't know if it'll lead to some type of financial crisis, but in any event, gold will certainly hold its value and increase in value considerably, in my opinion.
Let me ask you this.
So I personally began to invest in gold right after Q3. So that was back in 2015, 2016 for me.
And I thought, man, I miss this wave.
I miss this crazy wave of money printing, you know, because after QE1, QE2, and QE3, where the money prices were just going overtime hot, the price of gold followed as well as the price of silver.
However, now...
What happened in QE3 was kids' stuff compared to what's happened during the pandemic.
However, it seems like the price of gold has not kept up.
What do you owe to that?
Let me ask a more fundamental question.
How is the price of gold determined?
The price of gold is traded openly on the open market.
There's paper gold that's traded.
There's physical gold, which obviously has a premium to it because it's having to be mined, minted, delivered, everything else.
But that fluctuates.
And oftentimes, Volatility in the world will cause the price of gold to run upwards.
The dollar will cause the gold to go up and down because it's priced in the dollar.
So right now we're seeing an awful lot of dollar strength because money is fleeing bonds and money is fleeing the stock market.
So we're seeing dollar strength right now.
This is a lot like 2008.
You know, gold initially in 2008 went down.
And a lot of people forget that fact.
It went down because the dollar went up initially.
It jumped up.
When everything was heading south.
And so people flee to the dollar initially.
And then when they realize what's happening, that we're heading into a recession, the dollar starts to lose strength.
It starts to plummet.
And then because the dollar and gold have an inverse relationship, dollar falls, gold rises.
So that's why you have big investment banks like Goldman Sachs predicting gold to be at 2,500, which is a 40% move from here.
You have Bank of America predicting gold to be at 3,000.
So they see the writing on the wall that everyone's moved to the dollar, there's dollar strength, inverse relationship, gold has fallen a bit, but it has not fallen on the same level as stocks, as bonds this year, as the crypto market this year.
Gold is actually holding pretty well.
I believe it's down 4% on the year as of today, where you've got several very popular FANG stocks and everything else down upwards of 50%.
So when you say, in terms of how the price of gold is determined, when you just type in on Google price of gold, it says right now $17.80 or something in that range.
So that's determined by what?
There's mining coming out of the ground and those miners sell future contracts and any gold that they find.
And so that is generally how it's based on those future contracts or also you incorporate the inter-trading of the gold that already exists?
Yeah, it's just open market trading, just like the price of oil, just like a price of a stock.
This right here is an American Walking Liberty one ounce gold coin.
And typically, I order at least one of these from our sponsor, American Heart for Gold, every single month.
The reason I do so is because, I mean, as you likely know, the inflation rate in this country is the highest that it's been in, what, the last 40 years now.
Everything like the price of food, the price of housing, the price The price of gas is absolutely going through the roof.
And in fact, market experts like the CEO of JPMorgan Chase, he's not only predicting a recession, but he's even using words like unprecedented economic hurricane.
And so listen, I absolutely do not give you any financial advice, but I would recommend that you do what I do, which is pick up the phone and call American Hartford Gold.
Their super friendly staff can help you diversify your portfolio by either getting physical gold and physical silver delivered directly to your doorstep like I do, or deposited directly into your IRA and your 401k accounts that make the entire process super simple.
And actually, besides me, they have an A-plus rating with the Better Business Bureau with quite literally thousands of satisfied clients around the country.
And best of all, to our viewers, to the viewers of Facts Matter, they are currently throwing in $2,500 worth of free silver on your first qualifying order.
So giving them a call is an absolute no-brainer.
So pick up the phone and call 866-242-2352.
That's 866-242-2352.
Or text Roman to 65532.
The link will also be down in the description box below.
And then let's head on back to the studio.
Earlier you mentioned something interesting that I want to circle back to.
You mentioned some of the names of the big banks like Bank of America.
So just a few weeks ago, actually maybe even less than two weeks ago, one of the top executives over at JPMorgan Chase, he was actually found guilty of price manipulation.
So specifically, a man named Michael Nowak, who was the global head of J.P. Morgan's precious metal trading, he was found guilty on 13 counts of attempted price manipulation, commodities fraud, wire fraud, and spoofing the prices of gold, silver, as well as some other precious metals.
Can you sort of elaborate on that?
How could a banker like this manipulate the price of an international commodity like gold?
Yeah, look, JP Morgan is set to pay a $920 million fine, which is a record for spoofing.
For years, the defendants placed thousands of false orders for precious metals, creating a ruse that lured others into making losing trades.
They manipulate the price by spoofing.
The goal of spoofing is to move market prices in a way that financially benefits the traders' pre-existing positions in the market.
This was banned back in 08, but still pretty prevalent in the markets.
Oh, so in that case, the only person that's screwed is the actual customer.
Absolutely.
Unfortunately, unfortunately.
But it's a bad, bad deal, bad practice.
So let me actually ask you this.
So within this case, here was a short statement.
This was from the U.S. Justice Department within this case.
And here's what they wrote.
Quote, What do they mean by spoofing?
What does that term mean?
Yeah, spoofing.
Spoof trading, also known as bluffing.
Trade spoofing is a trading practice where a trader sends a large order to the market with the intent to cancel before the execution just to manipulate the market.
The large order tricks other traders into thinking that there's a huge demand or supply in the market and they trade accordingly.
So it's basically faking everyone out to trade a certain way.
Oh, I see.
I remember actually a few years ago there was a similar story within the silver market where the executives at several different banks, you know, technically they were competitors against each other, but they essentially had this back-channel communication where they would say, hey, I'm buying silver at this price, and then the next guy would buy here, here, here, here.
And so the idea was that they wanted to hit like, let's say, $18.
They wanted to hit that exact point because they knew there was a buy order that they could then earn money on from one of their clients.
Correct.
There's buy orders at every level and they're hoping to trigger those or trigger a sell order.
Wow.
So let me ask you this.
Usually when a market is heavily manipulated, eventually things have to correct because the reality of the market is it's too complex and if you have a manipulation that tends to either become a bubble or it tends to warp the market around it and then eventually crashes down.
What do you believe will be the future of either gold or silver with these things happening in the background?
You know, we've seen the price of physical gold, the premiums go through the roof this year, you know, from the U.S. men and so on.
Typically a Silver Eagle you could buy, and sorry, this is the long answer, but typically a Silver Eagle, you know, before COVID, you could buy for $2.50 over spot.
And now that's trading for $12 plus over spot.
So we're seeing the premium market go through the roof.
And generally, The price of gold and silver is not far behind that in terms of rising.
So we'll see that those prices rise.
I tend to lean on some of the experts.
You've got some smart people at Goldman Sachs saying $2,500.
I tend to agree with that.
And look, crews of guys at banks can get together and try to spoof the market.
They can try to create an arbitrage opportunity.
They can try to suppress the price.
But when things are hitting the fan out there in the world and you have A tsunami of people buying gold and silver, that price is going to rise no matter what.
And I think we're in a very similar situation to 2008, where gold is laying low for a little bit while the dollar is strong.
And then as we get to the end of this year through the fall, as we get into 2023, we're going to see gold skyrocket.
I'm thinking $2,300 to $2,500 next year is easy.
I can say that with confidence.
When you look at the amount of money we've printed over the past couple of years, M2 money supply has increased by 80% in two years.
It's funny when you see Jerome Powell and the Fed get up there and talk about, we don't know why there's inflation.
You see Joe Walton talking about, we don't know why there's inflation.
We blame Russia.
It's like, well, okay, yeah, that doesn't help having war over there, but we printed all this money in the past couple of years.
That's why there's inflation.
And so that will come back to really hit the dollar soon, and that's when gold will certainly take off.
Yeah, and actually, you mentioned the war in Russia, and I remember there was sort of an incident where when the sanctions were first being hit upon Russia, they actually began pegging their currency to gold, and then by extension, their oil to gold, right?
They set a floor for the price of gold at, I believe, $1,800.
It seems like you're right.
When everything goes out the window, when it's wartime, when it's something real happening, gold is the real thing.
Yeah, and we never recommend people putting all their money into gold and silver, but it certainly makes a whole lot of sense to diversify with it, create a hedge for yourself, create an insurance policy.
If you worked hard to build all this wealth throughout your life, Certainly, putting a little bit of an insurance policy in place on that money, particularly with everything that we have going on right now, makes a whole lot of sense.
Yeah.
So last question.
About a week ago, I was actually driving with some friends, and we were just chatting about finances, and they asked me about gold and silver.
And one of them specifically asked me whether they should invest in an ETF for gold and silver versus the real commodity like I do.
And I told them that, from my reading at least, it seems like the ETFs, Even though the public consensus around them is that they're fully backed by the underlying commodity.
It seems like, again, just from my reading, and I'd love to know your opinion on this from actually being in this industry, it seems like a game of musical chairs where if everybody pulls out, there's only a certain percentage of people who can actually get their precious metals.
Is that true?
Yeah, look, you're not going to be able to get that ounce of gold.
If you have an ETF that says it's backed by an ounce of gold, a gold-backed IOU is still an IOU. There's still counterparty risk there.
They don't have all those ounces accounted for in those ETFs.
Call them up, try to take delivery.
It won't happen.
I always tell my clients, if you're trying to protect your home, do you buy stock in Smith& Wesson or do you go out and buy the real gun?
You buy the real gun.
If you're looking for a true safe haven without counterparty risk, you buy the physical gold and silver.
All right, Max.
Well, thank you so much.
And if anybody wants to buy some gold and silver, I would personally highly recommend they check out American Heart for Gold, not only because they sponsor this channel, although, frankly, it's a sign that they're American patriots that they sponsor our channel, but they're also very good to work with.
They give fair prices and solid delivery.
Max, thank you so much.
Now, if you'd like to learn more about both the central banks' buying up of gold bullion, as well as the manipulation in the gold price that's happening behind the scenes by these large institutions, I'll throw all those links down into the description box below this video for you to check out.
And all I ask in return is that if you haven't already, take a quick moment to smash that like button so this video can be shared out to ever more people.
And also consider subscribing to this channel as well, that we can get this type of honest news content delivered directly into your YouTube feed every time we publish it.
And then until next time, I'm your host, Roman from The Epoch Times.
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