Declassified CIA Memos Reveal Probes Into Gold Market Manipulation

Tyler Durden's picture

By Smaul gld

The CIA recently released a series of declassified 1970s memos relating to the gold market and the newly created SDR. These memos give new insight how the CIA viewed the gold market, the perceived manipulation of gold and the potential for the SDR to become a gold substitute in the international monetary system.

The classification of the documents is significant because "secret" is the CIA’s second-highest classification. The CIA notes unauthorized disclosure of secret information would cause “serious damage” to national security.

Each of the declassified gold and SDR documents was marked “SECRET” with a warning: "The document contains information affecting the national defense of the United States within the meaning of Title 18 sections 793 and 794 of the US Code."

CIA Concerns of Gold Market Manipulation (link) -  Document: Intelligence Memorandum – The World Gold Market- Semi Annual Review January – June 1970.

The 1970 CIA memorandum reviewed in the video below shows a CIA concerned about gold market manipulation by the Swiss whom they characterize as "in an excellent position to influence the London free market fixing." The memorandum points to "strong circumstantial evidence that Zurich bullion dealers, under the leadership of the Union Bank of Switzerland are again manipulating the gold markets"

This manipulation in turn was interfering with an IMF agreement with South Africa to sell its gold to the IMF under certain conditions when it could not sell its newly mined out put on the free market:. 

“While the [IMF] agreement essentially provides a floor of $35 an ounce for South African gold, it guarantees a free market supply large enough to keep the free market price at or near the floor at least through 1970.”

The CIA memorandum bemoans Swiss manipulation of the gold market: “There is  strong circumstantial evidence that Zurich bullion dealers, under the leadership of the Union Bank of Switzerland are again manipulating the gold markets” “London bullion dealers had hoped that the 1969 agreement between the IMF and South Africa would restore London as the focal point of the world gold market. It has not.”

Ironically, as page 5 of the memorandum notes, much of the recent gold fix rigging exposed in recent year, was correctly anticipated by the CIA some 47 years ago:

"Manipulation of the free market price is suggested by the extremely narrow price range that prevailed for eleven consecutive weeks -- from later January through mid-March. During this period, more than 85% of all morning and afternoon fixings fell within the $34.97 to $35.01 range, with nearly 40% of all quotations set at exactly $35.00.  

 

Moreover, Swiss bullion dealers are in an excellent position to influence the London free market fixing. At each of some 255 morning fixing a year, the manager of Rothschild's bullion and foreign exchange department suggests an opening price based on a previous half hour of intensive telephone conversations with people at the Bank of England and a host of others, mainly dealers in Switzerland. Representatives of the four other houses are in constant telephone contact with their trading rooms and these in turn are in direct communication with as many as a dozen key clients scattered across Europe. The result is that supply and demand conditions in Zurich are strongly reflected at the London fixings."

* * *

CIA Talks up the IMF's  Strategic Drawing Rights (link) - Document: Intelligence Memorandum – Special Drawing Rights: Paper Gold In Action – September 1970

The gold standard under Bretton Woods Agreement was showing cracks in 1970. The CIA memorandum notes: “the only available means of increasing reserves abroad was through continued deficits in the US balance of payments, But the US no longer had excess gold reserves and other countries had become reluctant to accept large additions to their dollar holdings.”

The CIA memorandum reflects the tenuous position of the gold market and the inclusion of gold in the international monetary system just prior to the break up of the Bretton Woods Agreement in 1971. The CIA viewed the newly created SDR as a potential replacement for gold calling it:  “a new type of liquidity as permanent as gold it self – to insure increases in liquidity”... “The SDR is a form of money and credit”

“SDRs can not be extinguished by being exchanged by gold -they can only be traded among central banks. And unlike gold, there are no private uses for SDRs that compete with their use as an international currency.”

CIA however concludes that “Nevertheless, SDRs are not soon likely to supplant the dollar in the international monetary system. Foreign central banks need working balances which are presently denominated largely in dollars.” 

* * *

CIA Worries of Substantially Higher Gold Prices (link) - Document: Intelligence Memorandum Recent Trends in the Gold Market – October 1970

This memorandum grapples with the question; Why has there been a sharp rise in the price of gold?  “in the absence of any monetary crisis there seems to be no obvious explanation for the recent substantial price in gold.”

“There is however strong circumstantial evidence that Zurich bullion dealers, under the leadership of the Union Bank of Switzerland are again manipulating the gold markets”

“London bullion dealers had hoped that the 1969 agreement between the IMF and South Africa would restore London as the focal point of the world gold market. It has not.”

“The present situation implies effective control of free market supplies by the Swiss commercial banks.” 

The memo also cited a study that says “gold demand from industrial users and hoarders already exceed free world output…and several – less than interested individuals point to the inevitability of the free market gold price rising to as much as $100 per ounce by 1980.”  That would represent a three-fold increase to the then prevalent price.

* * *

More in the video below

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tmosley's picture

I'm sure it's nothing.

BaBaBouy's picture

Item: GOLD Is Manipulated ~~~ No Shit .???

Declassified From 1970's ... How about Current? OR ... We Have to wait until 2050 to find out what the paper GOLD markets are doing to it TODAY...

Looney's picture

 

All Central Banks and governments around the world DON’T HATE GOLD. They will keep using it as the best collateral for a very long time to come.

What they hate is that WE own gold – they want it all. Cucksuckers!  ;-)

Looney

Two-bits's picture

This, times a thousand. And they will kill us all if they must to maintain control of it.

SILVERGEDDON's picture

This is great news.

In 47 years, we'll know that the institutional players were still boot fucking the markets in 2017.

C onciliatory
I gnorant
A ssholes 

Burn these fucks to the waterline, tow the wreck ashore, burn it into glass on the beach, salt the earth, concrete it over, and put a fence around it.  

Innominate's picture

No.

Nuke it from orbit. It's the only way to be sure.

Kirk2NCC1701's picture

With apologies to Cocksuckers and Fluffers, who serve a useful, albeit menial purpose.

auricle's picture

The CIA viewed the newly created SDR as a potential replacement for gold calling it:  “a new type of liquidity as permanent as gold it self – to insure increases in liquidity”... “The SDR is a form of money and credit”

“SDRs can not be extinguished by being exchanged by gold -they can only be traded among central banks. And unlike gold, there are no private uses for SDRs that compete with their use as an international currency.”

 

Fvking alchemists. Yah, SDR's are better than gold because the plebs cannot own them. Some fictitious SDR widgets that derive their value from a banker, now that's better than gold. These sycophants will twist as much reality and logic to get the solution their masters desire. Seems in this case the CIA is working exclusively in the interests of the bankers. And I thought the CIA was there to protect our interests.

 

auricle's picture

The new world reserve currency is is making its debut into the mainstream consciousness. If you thought you liked the idea now, just wait till Wolf Blitzer describes how great it will be for everyone. 

peddling-fiction's picture

Then the Hahwid guy will chime in, adding that you are fool if you are against SDR's.

Jack's Raging Bile Duct's picture

that's only until they have a global governance formalized, with the SDR fully realized. Once upstarts like Iran, Russia, Syria, and China are brought to heel, they won't blink at gold anymore. It'll be nothing but SDR fiat allocated to your mandatory state-managed electronic account, or you don't get to eat.

peddling-fiction's picture

Now they are dropping SDR breadcrumbs for the Phoenix NWO currency announcement in 2018.

I guess a large crisis/war is needed for that. Right?

https://socioecohistory.wordpress.com/2014/07/26/flashback-1988-get-read...

SilverDoctors's picture

PM Industry is JUST NOW figuring out gold and silver have been manipulated for decades!  LOL
I speak with VPs, CEOs, and Heads of Trading Desks at the largest bullion APs and wholesalers daily, and none of them seem to have a clue. It's not just the mining industry! 

Bay of Pigs's picture

I'm sure people like Nadler, Gartman, Armstrong, Norcini and others might find this information educational since they deny CB and Wall St. Bankster suppression and manipulation.

2_legs_bahhhhhd's picture

Rule number one....never shit where you eat. Wait, I guess that should be the number two rule.

Two-bits's picture

So conspiracy fact once again.

...look over there, buildings in freefall.

Chupacabra-322's picture

@ Two-bits,

I forget, what Office's were in Building 7.

Two-bits's picture

Law offices of Dewey, Cheatem, & Howe

Chupacabra-322's picture

When former Secretary of Defense Donald Rumsfeld was asked about World Trade Center Building 7 (WTC 7), he claimed that he had never heard of it. This was despite the unprecedented destruction of that 47-story building and its relationship to the events of 9/11 that shaped Rumsfeld’s career. Although not hit by a plane, WTC 7 experienced free fall into its own footprint on the afternoon of 9/11—through the path of what should have been the most resistance. The government agency charged with investigating the building’s destruction ultimately admitted that it had been in free fall during a portion of its descent. That fact makes explosive demolition the only logical explanation. Considering how WTC 7 might have been demolished leads to some interesting facts about Rumsfeld and his associates.

The one major tenant of WTC 7 was Salomon Smith Barney (SSB), the company that occupied 37 of the 47 floors in WTC 7. A little discussed fact is that Rumsfeld was the chairman of the SSB advisory board and Dick Cheney was a board member as well. Rumsfeld had served as chairman of the SSB advisory board since its inception in 1999. According to the financial disclosures he made in his nomination process, during the same period Rumsfeld had also been a paid consultant to the Director of Central Intelligence, George Tenet. Rumsfeld and Cheney had to resign from their CIA and SSB positions in 2001 when they were confirmed as members of George W. Bush’s cabinet.

Several of Rumsfeld and Cheney’s colleagues had access to, or personal knowledge of, WTC 7. Secret Service agent Carl Truscott, who was in charge of the Presidential Protection Division on 9/11, knew the building well because he had worked at the Secret Service’s New York field office located there. Furthermore, Tenet’s CIA secretly operated a “false front of another federal organization” from within WTC 7. That false front might have been related to the Secret Service, the Internal Revenue Service, Rumsfeld’s Department of Defense, or the Securities and Exchange Commission (SEC), all of which were listed as tenants of WTC 7. The SEC lost many important documents when the building was destroyed, including much of what was needed to effectively prosecute Enron and WorldCom.

In any event, it is clear that covert operatives had access to WTC 7. Through the Secret Service, the DOD, and a secret office of the CIA, the building provided access to many such people. Additionally, electronic security for the WTC complex was contracted out to Stratesec, a security company operated by military arms logistician and Iran-Contra suspect, Barry McDaniel. Wirt Walker, the son of a CIA employee who was flagged by the SEC for suspected 9/11 insider trading, was McDaniel’s boss at Stratesec.

http://www.washingtonsblog.com/2014/05/donald-rumsfeld-demolition-wtc-7....

Ignatius's picture

"Don't give me that conspiracy BS. There has never been a conspiracy in this country."  --  Jimmy Clarridge, CIA Latin America

https://www.youtube.com/watch?v=z11zYluIzYI

I know the Latin Americans were relieved to know this.

shizzledizzle's picture

LOL are they dalking about Deutsche Bank.

HenryKissingerChurchill's picture

Rothschild .... NOT REDACTED... interesting.

The CIA viewed the newly created SDR as a potential replacement for gold calling it:  “a new type of liquidity as permanent as gold it self – to insure increases in liquidity”... “The SDR is a form of money and credit”

for a good SDR intro just read

Rio: Reshaping the International Order by not other than the Club of Rome (1976)

and Corbett https://www.corbettreport.com/sdr-world-order/

and read your flight baggage insurance... it is valued in SDRs!!!!

quadraspleen's picture

Having the SDR as a "gold substitute" is a bit like copying your valuable files to another folder on your computer and calling it a backup.

“The SDR is a form of money and credit” - No, it's really not. It's another form of digital fiat, backed by more promises from the same people whose fiat it's backing. Jesus.

Seasmoke's picture

Of course. Otherwise Gold would be $50,000USD. And we can't have that. TOP SECRET.

VWAndy's picture

 So if you read between the lines they were simply double checking to make sure the fix players stayed on the same page.

FlKeysFisherman's picture

This was actually a "How To" study so we could get in on the action.

Leah's picture

Time to eliminate the CIA. It protects the profits of businesses, not the people who pay for its budget

Snaffew's picture

don't the people who pay the CIA's budget get their paychecks from businesses?  If they don't, then they are getting their paycheck from a state or federal government job which is entirely paid for by the real taxpayers.  Gov't employees are like tits on a bull--

Elco the Constitutionalist's picture
Elco the Constitutionalist (not verified) Jan 19, 2017 3:10 PM

SDR is proof the Jews won WW2.

onwisconsinbadger's picture

Is anyone going to jail ? If not, who cares what is manipulated.

essence's picture

Have you ever noticed that when it comes to GOLD, those that buy the physical are called "Hoarders".

Funny that those that buy and hold stocks aren't labeled "Hoarders".
Those that buy bonds aren't called "Hoarders".
Those that buy land or other real estate aren't called "Hoarders".
Those that save Federal Reserve Notes aren't called "Hoarders"
Those that buy the Gold ETFs or other future markets (paper gold) aren't called "Hoarders".

Only the holders of physical Gold get the pejorative label of Hoarder.

Odd how that works out.

 

 
Making Merica Great Again's picture

It is because they are threatening the system! Fuckin gold hoarding terrorists :D

essence's picture

Yes of course, I was being a bit facetious to make a point ( and hopefully wake up some folks).

The Powers That Be are well aware of the power of words/terms in their continual effort to control the narrative. Physical Gold holders aren't labeled "hoarders" in the MainStreamNews & official organs by accident.

 

TalkToLind's picture

It's only called hoarding when you're in possession of something the gubermit wants to steal from you.

fearnot's picture

Fake news and fake history galore. Just in time for the CIA fake intelligence agency to front the scam that a digital gold called Comex and LBMA was necessary to support the US dollar. And funny how this "intelligence" report failed to mention the crony London Gold Pool that manipulated prices from 1962-1968 with Washington's and Swiss BIS lead roll using CB gold and as much Russian gold that they could get Soviets to part with
During The Cold War (1962–1979) that spanned the period between the aftermath of the Cuban Missile Crisis in late October 1962, through the détente period beginning in 1969, to the end of détente in the late 1970s. Once that Russian physical gold supply was depleted from being dumped on market, the London Gold Pool collapsed. Funny how the CIA f-faces missed that.

essence's picture

Yes to your comment above.

I'll also add that one entity that escapes notoriety is the Exchange Stabilization Fund. It's difficult to even speculate about it since virtually little to nothing is known about its CURRENT activities.

People talk about  "audit the Fed" .... I think it behooves us to expand the scope such that we demand a through audit of the ESF and any potential "black budget" financial activities of the CIA.

Me thinks there's a not insignificant chance they are the real terrorists.

 

 

 

Bluntly Put's picture

Just did a quick calc thought I'd share

1933: US debt =   $23,814,527,613.72
2017 US debt = $19,959,954,817,351.65

% increase = 8,3814% (838.14x)
FY = PV (1 +i)^t
838.14 = (1 + i)^t
log(838.14) = t log (1 + i)
2.9233 = t log (1 + i)
2.9233 = 84 log (1 + i)
0.034801 = log (1 + i)
(1 + i) = 10 ^ 0.034801
(1 + i) = 1.0834
i = 8.34%

Gold Price = $35 (1 + 0.0834)^84
Gold Price = $29,333

Chupacabra-322's picture

Ok, copy & pasted. Now explain it to me like if I was a six year old.

"If you can't explain it to a six year old, you don't understand it yourself."
-Albert Einstein.

Bluntly Put's picture

That's a formula to determine the future value of any interest bearing instrument. I just back calculated to estimate what the rate of expansion of debt was for our government over 84 years. In 1933 FDR took the dollar off a gold standard, and then revalued gold to increase treasury's holdings of gold. 

Gold was $35 an ounce then after FDR revalued gold. So, if the rate of increase of our debt (annual deficit spending) was around 8.5% annually, then why didn't gold appreciate at the same rate? If it had then today it would be roughly $23,000 per ounce.

But of course that only accounts for the increase in national debt, not commercial debt. Since then we've added $40 trillion in commercial debt on top of $20 trillion in national debt. So, the inflation of the dollar has to be much higher than 8.5% but I used 8.5% because that's the rate of increase in our national debt, the base from which all other leverage is created.

Bluntly Put's picture

Another interesting thing to note, is that from 1933 to 1971 gold was held constant at $35 an ounce. But if the government was increasing our national debt at around 8.5% annually, then in 1970 gold should have been priced at:

FV = $35(1+0.085)^37

Gold price 1970 (adjusted for expansion of the monetary base) = $716 an ounce.

So, that is why Nixon closed the gold window (foreign governments demanding gold bullion for treasuries in lieu of dollars) to foreign governments because they knew the price of gold would eventually skyrocket due to the debt increase.

But when they formed the gold cartels they began to repress the price by selling naked short gold futures contracts. So somewhere, a huge gaping hole in reality is slowly tearing larger and larger.

Jus7tme's picture

Wait a minute--it was not in 1933 that the gold price was articially held at $35, it was about 1968 was it not? Hence the "84" does not seem right in the equation  Gold Price = $35 (1 + 0.0834)^84

Youri Carma's picture

This is very significant: "gold demand from industrial users and hoarders already exceed free world output…" And that was in the 70-ties mind you! This situation today only could have gotten far worse.

Ms No's picture

It sounded to me like the Rothschild banking oligarchs didn't have complete control of the Swiss dealers at the time, wished to keep gold depressed and continue to rape the Africans for 35 an ounce.  Gold price fixing sounds like banker-speak for gold moving in a free market direction which we don't approve of, which is usually up.  It also sounds like they were already having trouble with gold supply.

There really can be no question at this point who the CIA works for.