Gold leasing plays a strategic role in manipulating gold prices
The transcript of the video above reveals how central banks, specifically the Reserve Bank of Australia (RBA) and the Bank of England, participate in a system of gold lending that operates in ways most people would find questionable if not outright deceptive. It exposes practices where national gold reserves, supposedly stored and held for safekeeping, are used in behind-the-scenes transactions that resemble financial shell games rather than secure stewardship of a nation’s wealth.
The heart of the matter lies in the fact that Australia’s gold, stored in the Bank of England’s vaults, was allegedly melted down and refined between 2015 and 2020. This is not a small administrative detail. Once gold bars are melted and re-refined, their original serial numbers disappear, and they become indistinguishable from other bars. This makes it nearly impossible to verify if the gold returned later is the same as what was originally stored. According to the transcript, the RBA has documentation showing that its gold was indeed refined during this period. This directly implies that either the original bars were never actually in place or that they were loaned out without adequate safeguards.
Furthermore, there is an admission that some gold bars have been found to be fake, or at the very least, had duplicate serial numbers. This would not be a minor bookkeeping error, it is a serious breach of trust. If national gold reserves can be substituted or mishandled in such a way, then the entire idea of gold as a stable store of national value is compromised.
The RBA defended its actions by stating that gold lending is often done on paper only, meaning the physical bars do not move. However, the nature of paper lending introduces opacity. When a bar is lent, another bar, supposedly meeting strict purity and weight standards, might be returned. But this substitution destroys the chain of custody. It means a country no longer has its original gold. It has someone else’s, and must now trust the system to not collapse or defraud it. The RBA’s assurance that larger bars have not been questioned in terms of authenticity is not a sufficient safeguard against risk, especially when the Bank of England has already acknowledged the existence of fakes or duplicates.
An even more troubling issue raised in the transcript is that the practice of gold leasing is not just about lending. It plays a strategic role in manipulating gold prices. Alan Greenspan openly stated in 1997 that central banks could lease gold to suppress its market price. By increasing the apparent supply through leasing, essentially dumping borrowed gold into the market, prices are kept artificially low. This benefits governments and financial institutions that prefer low gold prices, possibly to maintain confidence in fiat currencies. But it severely harms gold-producing countries like Australia, where the gold sector contributes $28 billion to the economy and supports over 100,000 jobs.
The central bank’s explanation that gold loans help producers who haven’t yet mined the gold is misleading. While this may facilitate certain transactions, it contributes to an oversupplied market and undermines natural price discovery. The RBA’s small financial return from these loans is nothing compared to the damage it may do to the long-term profitability of the domestic mining sector. Essentially, Australia risks giving away its national asset for temporary accounting gains, while suppressing the very industry that pulls that gold from the ground.
This is a textbook case of elite financial interests overriding national economic priorities. While the RBA argues that these practices are standard in central banking and are carefully managed, the implications are disturbing. A country’s sovereign gold should not be subject to opaque lending practices that benefit global financial markets at the expense of domestic industries and economic self-determination.
If anything is clear from the transcript, it is that the gold is not truly secure. It is not being held as a hedge against economic instability or as a reserve of national strength. It is being used as a tool in a complex financial game that Australia’s own government may not fully control. The system is structured so that trust in foreign central banks and in the honesty of markets substitutes for real, physical possession and accountability. That is not sound policy, it’s strategic naivety.
The RBA and other reserve banks involved in this system are effectively participating in a gold scam: they claim to hold gold, yet allow it to be reprocessed, lent, and substituted. This breaks the most basic principle of asset custody. The gold is no longer an immutable reserve. It becomes a number on a balance sheet, vulnerable to fraud, manipulation, and political pressure. If the objective is to safeguard national wealth, this system is a failure.
This isn’t about conspiracy theories or ideological narratives, it is about basic accountability. Nations that allow their central banks to engage in such practices are exposing themselves to risks that no responsible steward of national resources should accept. The gold belongs to the people, not the system. It should be treated as such.
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