``there's a problem with Kaminska's musing that only central banks are propping up the gold price these days. Yes, some central banks, mostly Eastern ones, are buying gold, but there is no indication of gold buying by any major Western central bank. Indeed, to the contrary, there is a long history over the last couple of decades of Western central bank gold sales, leases, and swaps that can be interpreted only as mechanisms for underwriting the "paper gold" market -- that is, to use the euphemism for gold price suppression, for providing "liquidity" to the gold market. To support its price, Western central banks would not have to come close to buying gold. They could just stop supplying "liquidity" to the "paper gold" market. Now maybe Western central banks are slowly withdrawing support from the "paper gold" market, but it sure didn't look that way when someone sold immense amounts of "paper gold" simultaneous with the devaluation of the Swiss franc last September, apparently meaning to prevent the metal from ascending to the role of ultimate "safe haven" currency. That is, the decades of Western central bank gold price suppression, right up to the attack on gold amid the Swiss franc's devaluation last September, are almost certainly still exerting a far more suppressive effect on the gold price than any supposed recent support being lent to gold by Western central banks.''

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