GATA seeks to expose US gold reserves

The Gold Anti-Trust Action Committee (GATA) is attempting to compel the US Federal Reserve and the Treasury Department to publicise the extent of the country’s gold reserves.

GATA is a non-profit making organization that seeks to prevent gold cartels controlling the price and supply of gold and its related financial securities.

The committee is demanding sight of all records in the possession or control of the Federal Government that contain mention of gold swaps involving the US Government from January 1, 1990, to December 6, 2007.

In addition, it is asking for documents identifying the legal authority for the swaps and will also request documents involving gold loans and leases “and any other possible impairments of the gold reserve.”

Bullion banks borrow gold from Central banks under leasing arrangements, while gold swaps are normally transacted between central banks, in exchange for currency.

According to GATA Chairman, William Murphy, the requests are “only the first we plan to make seeking a full accounting of the US gold reserve”.

The reserve has not been audited in 60 years and Mr Murphy believes that “investors have the right to know exactly what the US government is doing to affect what is supposed to be free markets”, especially as “intervention by governments in the currency and gold markets has been increasing dramatically”.

In late 2006, Blanchard and Company, the retail dealer in rare coins and precious metals, published a report in which it explained that “central banks are far and away the largest holders of gold bullion on the planet, making up roughly 18% of the available stock”.

Some central banks report their purchases and sales of gold with a delay of up to nine months and there are suggestions from market analysts that governments are less than transparent about the extent of their gold purchases.