Fed sells paper gold while buying real metal

Rob Kirby: Fed sells paper gold while buying real metal

Submitted by cpowell on Tue, 2010-10-05 00:34. Section: Daily Dispatches

8:30p ET Monday, October 4, 2010

Dear Friend of GATA and Gold:

Rob Kirby of Kirby Analytics in Toronto reports tonight that JPMorganChase, acting as always as the agent of the Federal Reserve, is combing the planet for gold production commitments from mines even as the investment house, again as the Fed's agent, keeps selling paper gold. While Kirby's assertion is unsourced rather than documented, it is pretty much cinched by his observation that JPMorganChase could not hold its fantastic position in interest rate derivatives if it was not the Fed's agent in controlling both interest rates and the gold price. Of course the relationship between interest rates and gold, long documented by GATA, is the point of the gold price suppression scheme. Kirby's commentary is headlined "The Federal Reserve Is Selling Paper Gold and Buying Physical Gold" and you can find it at GoldSeek here:

http://news.goldseek.com/GoldSeek/1286223866.php

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.