The Other Price of Gold
Who out there knows the price of gold? Most of us would at least be likely to say that the price of gold is four hundred and something.....wouldn't we? And we would likely point to the price as quoted at N.Y.'s COMEX exchange, which at the time of writing had the spot gold futures contract trading at 463.00 per ounce, as proof of the market price of gold. Could anything be simpler?
While no one could or would be faulted for thinking in the manner outlined above, I would like to ask the question, "What about the other price of gold?" You see, since we know for a fact that there are at least two markets for gold - that without a doubt the Fed has been involved in, either or both of, as recently as 1975:
Would it not make sense that there is a pretty good chance that there are two prices for gold? I mean, if I was going to sell my gold - I'd want to get the best price for it, wouldn't I? So that means I would need to know the price in both the PRIVATE and the OFFICIAL markets, no?
Since we all know, in Sir Alan of Greenspan's own words [quoted from written correspondence in a letter to Rep. Ron Paul under oath 2/24/1999],
"....that since the 1930's the Federal Reserve has had no authority to be involved with the gold markets...."
this does create a conundrum of sorts [or perjury, perhaps?] now, doesn't it? If my memory serves me correctly - some people have gone to jail for telling fibs - haven't they?
On my planet, what differentiates two markets for the same commodity is price! Maybe it's time for Sir Alan or the esteemed Mr. Volcker to step forward and correct me if I'm wrong - so I may apologize. Otherwise, explain to the rest of us - the great unwashed - exactly what the difference is between the OFFICIAL and PRIVATE market for gold - and tell us all straight to our faces again, without the customary double speak, how the gold market is not manipulated by officialdom. Nothing could be simpler and we want an answer.