Gyroscopic Investing

U.S. Probes Gold Pricing

Oh, how I wish Harry were still here so I could listen to him address this on his radio show. Actually, he did at least once.

U.S. regulators are scrutinizing whether prices are being manipulated in the world's largest gold market, according to people familiar with the situation.The Commodity Futures Trading Commission is examining the setting of prices in London, in which a handful of banks meet twice daily and set the spot price for a troy ounce of physical gold, the people said.

http://online.wsj.com/article/SB1000142 ... 62340.html
If you don't have a wsj subscription, I'm sure there's an equivalent at Associated Press.

Price fixing is really hard to pull off. Even if you get a cabal to do it, there is large incentive inside the cabal to break their promise. Then of course there are new competitors that could come in and tip over the whole apple cart. Finally, when the markets want a price to move there is no small group of people on this planet that can stop it. This even includes the most powerful central banks.

Craig, I often go to sleep to those "money show" archives that I learned about at your crawlingroad site and just two nights ago I (again) heard the one in which Harry talks about his friend going to Switzerland to buy gold. Zurich banker: "Why do you want to do that?"
"Because I think gold is going to go up." (Harry told him so).
"It's not going to happen. Gold won't (ever) get much higher than $35 an ounce."
"How do you know that?"
"Because we control the market."