Mining and movie giant Frank Giustra says the price of gold has been “manipulated” by central bank officials, particularly the Federal Reserve, for decades with a broader scheme to preserve the supremacy of the US dollar in the global monetary system.
“Central banks manipulate gold prices”
Frank Giustra, CEO of Fiore Group and also founder of Lionsgate Entertainment, has historically stated that the gold price is central He said it was ‘managed’ by banks and bullion banks. Now, he folds his claim and says that the price was “fully manipulated.” Giustra made the following statements in a statement:
It’s no secret that since the US abandoned gold in 1971, they have been trying to suppress gold to allow the US dollar to maintain its supremacy. This advantage is important for keeping your home interest rates low, keeping inflation expectations important, important for many reasons.
Giustra notes that due to the highly leveraged nature of precious metals markets, gold is highly susceptible to fraud and other forms of commercial manipulation. As may be recalled, in September 2020, JPMorgan was found guilty by the CFTC of misleading the metal futures markets and subsequently fined $920 million. Giustra says:
What I’ve noticed lately is that when there is a large sell order, when the gold price is crushed, it’s pretty treacherous. It looks to me like it was done on purpose.
“The Fed is one of the key players in gold manipulation”
Giustra says he believes the Federal Reserve is one of the key players in regulating a larger price manipulation move.
I think the Fed works with bullion banks and I don’t think they need to communicate directly with bullion banks. They can do this through the BIS (Bank of International Settlements) and give them instructions to sell futures and then this is executed through bullion banks.
Giustra acknowledges that the authorities behind this price manipulation left no clear trail of evidence for their actions. “You will never find a smoking gun on it. That’s the problem. I guess years from now, we’ll see what they’ve done, but they won’t leave you a smoking gun for you to find,” says Giustra, stating that there is only indirect evidence.
“They can’t suppress the price of gold forever”
More importantly, the Giustra tries to forever manipulate the Federal Reserve’s gold price and He states that he cannot continue to suppress. “They can’t keep this game going forever,” says the mining tycoon, noting that gold is still worth investing in in the long run:
There has never been a manipulation that lasts forever. In the end, everything comes out of the wash. Given the dynamics currently between the US, China, Russia and the rest of the world, I think we may see this possibility sooner than I expected. They cannot suppress the gold price forever.
“The last thing the US needs is a $3,000 gold price”
According to Giustra, China is backed by gold once a central bank releases its currency, the manipulation will likely go away and the gold price will see a new low. Right now, countries around the world are engaged in what Giustra calls financial warfare. Giustra continues his explanations as follows:
The financial war between the countries had already begun. Before this hot war in Ukraine it was already boiling and now it is full. We are in a global financial war. Sanctions were an act of war, if you look at them from the sanctioning perspective. So, there is a war and the USA is fighting in this war in every way it can. The last thing the US needs is a $3,000 gold price because that will just warn everyone that there is a problem.
“Global monetary system needs to be reset”
Giustra explained that all this has made the current global monetary system unsustainable and that a hard reset is in sight. He adds that it is possible. Based on the current situation, Giustra makes the following predictions:
I suspect that the global monetary system needs to be reset. It’s not over. The US dollar is overvalued by trade deficits and I think this needs to be reset. I don’t see it happening by consensus, as it was during the Bretton Woods agreement and the 1985 Plaza Accord. At this rate, there is a very competitive and very tense world in terms of relationships, and I think that will challenge us.
“The dollar will lose its status as the only global reserve currency”
Giustra, China and Russia in this new global reset He also states that they are likely to partner together to lower the dollar. Giustra’s comments came after the Chinese and Russian central banks, which we have covered in our news as Kriptokoin.com , announced their plans to meet soon and discuss the future of their own national currencies.
As for the US dollar, Giustra says it will likely lose its status as the sole global reserve currency and instead serve as one of the few major global fiat currencies in a multipolar world. Giustra details his views as follows:
In a world with a bifurcated monetary system, there is a US dollar system for the West and perhaps a gold-backed system for some other countries.
