BIS swaps seem meant to stretch out paper gold

Reg Howe: BIS swaps seem meant to stretch out paper gold

Submitted by cpowell on Thu, 2010-07-15 04:28. Section: Daily Dispatches

12:25a ET Thursday, July 15, 2010

Dear Friend of GATA and Gold:

Reginald H. Howe of GoldenSextant.com, plaintiff in the 2000 federal lawsuit against the Bank for International Settlements for gold market manipulation, analyzes the recent massive gold swaps undertaken by the BIS and figures that they are likely "the latest technique for giving official support to an increasingly shaky gold banking business," a way of "increasing the ratio of paper claims on gold to the underlying amount of available real metal." Howe concludes: "The growing reluctance of central banks to part with whatever gold they have left can only be a positive development for committed gold investors."

Howe's analysis is headlined "Gold Derivatives Update: BIS Swaps" and you can find it at the Golden Sextant here:

http://www.goldensextant.com/commentary37.html#anchor5208

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