King World News interviewed multi-billionaire Hugo Salinas Price. He believes that central banks coordinated the fall in gold on February 29. He thinks the decline was a temporary event.
“I definitely think the central banks were behind it. I look at the graph of the gold price yesterday and when it collapses down $100 in about an hour, that is not natural market action. I think people are getting used to this. This is standard procedure and it doesn’t worry me at all.”
This is easy to say, but it is very difficult to prove. How did the banks do it? By entering the futures market and selling short. But this is extremely risky. What if gold moves back up? How can they get out of the contracts without driving up the price?
“The paper money people (central bankers), the fiat money people all over the world who are keeping us in this game, they are now in retreat. What you saw yesterday was a ‘Rear guard action.’ In reality, the gold and silver forces are overcoming them and overrunning them.
But why blame central banks? Why not blame private sellers?
There were also short sellers of silver. Central banks do not hold silver. Why would they care?
He thinks the decline was too sharp. Slow declines, day after day, would worry him.
He says the decline was not natural. I agree. But this does not provide evidence that central banks organized this.
It is easy to blame central banks for lots of reversals in the precious metals. They are convenient whipping boys.
Central banks inflate. They bail out large banks. These policies can usually be tracked. Somewhere, there is a “paper trail.” If there is one for Wednesday’s decline in gold, where would it be?
It is reasonable to ask for proof. I think we deserve evidence.