The Gold Report: On April 15, the gold price plunged about 9%the biggest one-day loss ever for the yellow metal. Many gold investors got "murdered" that day. Has your personal investigation revealed any suspects?
Ian Gordon: I suspect it was akin to what happened in 1999. The then-governor of the Bank of England, Edward George, supposedly said that "any further rise in the gold price would take down one or more trading houses." He said the rising price of gold was curtailed through the work of the Federal Reserve and the Bank of England. It appears that a bullion bank was caught offside on the short side and they had to take the price of gold down quite dramatically to allow it to cover.
I think something similar happened in April. I think it was manipulated to the downside. Goldman, Sachs Co. encouraged its clients to short sell gold two days before this occurred.
TGR: Could it have just been an error?
