In stating for many years that the gold (and silver) market is being heavily manipulated in order to suppress the price, those asserting this fact have often pointed to the highly suspicious activity of bullion-leasing as one basket of evidence supporting this viewpoint.

Why is bullion-leasing an inherently suspicious activity? For that we need only turn to the propagandists in the mainstream media. Why are we told again and again that no astute investor should ever buy gold or silver? Because they “generate no income.”

Thus in bullion-leasing, the obvious question is this: what is the commercial purpose (for the lessee) of having mere temporary possession of an asset which generates no income? The answer (of course) is that there is no legitimate purpose. This brings us to the realities of bullion leasing.

The illegitimate purpose of bullion-leasing (which has long been asserted by the detectives at GATA) is that bullion-leasing is simply a fraudulent means of maximizing the shorting of bullion (in order to suppress prices). While this point has always been obvious to any informed observer who studied this market; the problem has always been a “smoking gun” to confirm this fraud.

In this respect, there is no better smoking-gun than a confession. We can thank Reuters for being kind enough to oblige here. And it does so with four simple words:

BORROW GOLD TO SELL

While the low-grade Drones of the mainstream media can be credited with little in the way of intellects; we must presume them capable of grasping at least this simple premise:

You can’t “sell” what you don’t own.

Attempting to sell something which one has merely borrowed is a prima facie confession of fraud – with the exception of one context. There is one instance where it is legal (if not legitimate) to borrow-and-sell: short-selling. Here we get the confession:

some speculators are borrowing physical bullion and then selling it, a move that could add downward pressure to gold prices, analysts said.

Assuming that what these “analysts” are describing isn’t prima facie fraud (attempting to sell what they don’t own); then what is being described here can only be short-selling. And when we look at both sides of these bullion-leasing transactions; all that we see is fraud and conspiracy...

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The Fraud and Conspiracy of Bullion-Leasing