Interesting interview...just another "conspiracy theory" so rock .2 plese don't read this.
Eric Sprott: “I think it’s very important that your listeners (and readers) understand exactly the chronology and the depth of the investigation into the manipulation that’s gone on (in the gold market). It got a bit of a head of steam when the German regulator came out and said that they were going to investigate the LBMA...
“And then in the middle of December they investigated Deutsche Bank. On January 17th the (German) regulator came out and said it was possible the manipulation of the gold market could be worse than LIBOR.
But what’s happened in the last couple of weeks is we’ve had some lawsuits filed, and one of the lawsuits was filed by a legal firm that I had been in touch with a couple of weeks earlier. This law firm was the co-lead law firm in the LIBOR scandal. I’m sure they will be involved in the Forex scandal as well.
They’ve hired on a group that’s done all the investigative work on the previous scandals. So this is a serious investigation in terms of generating prima facie evidence of manipulation. I don’t think this is going to go away -- it’s going to get bigger.
I phoned them (the law firm) because I wanted to get involved in a class action lawsuit. I don’t know whether I will at this point in time because I’m Canadian and the lawsuit is filed in the U.S., but I think there is lots of energy behind the claims that we all have of manipulation.
So that’s building a head of steam. We’ve had many articles in Bloomberg, Reuters, the Financial Times, and others, about manipulation. I think more and more writers are taking it seriously because most everything that’s been suggested was manipulated, proves to be manipulated, and I don’t think gold will be an exception.
What this has caused to happen is the price of gold, from a manipulation point of view, has been released. You don’t see the selloffs that we’ve had before because the manipulators know they are being watched. I’m sure all of the internal audit departments of those banks are all over trying to figure out what their boys were doing to try to limit the size of the lawsuits.
So I think gold has very much had the ceiling taken off of it (in terms of price). Had there been no manipulation we should be at $2,100 gold today and we should be at $2,400 gold by the end of the year.”