Gold should top $1,000 within two years on its way to between $3,000 and $5,000, Bill Murphy of GATA.ORG was reported as saying in an article by The Globe and Mail in Toronto on Friday.
GATA believes that the U.S. Federal Reserve Board for years leased out large amounts of gold in paper certificates to suppress the gold price, thus bolstering the U.S. dollar as a reserve currency. GATA says the masterminds were Alan Greenspan, outgoing Fed chairman, and major U.S. financial institutions.
GATA says the U.S. Gold Reserve in Fort Knox does not have enough bullion on hand to meet its paper obligations. With the gold price rising and supply squeezed, the need to cover short positions with real gold will create a giant gold price increase -- and a potential crisis.
Murphy says "Russia, along with China and Saudi Arabia, have led the upsurge in demand for gold that has overwhelmed the U.S.-based cartel, he observed." For more info see our article Russian Central Bank Gold Sales Double
Source: The Globe and Mail.
By Gordon Pitts