Source: The French Saker
Translation: Jack & Robin
December 22, 2014
Starting today, December 22, 2014, fluctuations in precious metal prices, which were not truly free of manipulation, will be strictly regulated in US markets. The dollar’s value in terms of gold will be an officially set constant amount and will in no way be representative of any inability to buy an ounce of gold, even for an astronomical amount of dollars.
On December 11, the futures market regulator announced new rules for the two main markets, the Comex (Commodity Exchange) and the Nymex (New York Mercantile Exchange), based on rule no. 589, Special Price Fluctuation Limits. The spirit of this maneuver is adroitly buried in technical complexities summed up in a clever grid of permitted fluctuations in absolute values (not percentages), with price ranges that differ from one metal to another, since obviously the same absolute value (e.g., $100) does not in any way represent the same percentage of the value of an ounce of a given metal, such as copper or platinum.
It will not be said that the maximum fluctuation is 20% for all metals. But a careful reading of the grid shows, for example, that if the last price of gold was less than $1,000, the maximum fluctuation allowed (upward or downward) is $100, and if the last price was in the range of $1,000 to $2,000, the allowable fluctuation is $200, with the maximum range for gold in the grid being $3,000 to $4,000 (there is no open-ended range of, say, “$4,000 or more”).
With this new rule, the reader of the grid can only imagine what will happen when the price of gold reaches $4,000 (barely more than twice its price on 6 September 2011) – will it be unlimited free fluctuations or a definitive closure of the markets? – unless the regulatory authorities of the world’s leading marketplace believe, and expect everyone else to believe, that it is inconceivable that the price of gold in dollars could double from the price freely determined by supply and demand before the outrageous manipulations of September 2011.
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Continue reading THE UNITED STATES PREPARES TO END PRECIOUS METALS TRADING AND SET THE DOLLAR’S VALUE OFFICIALLY, by Stratediplo