- Welcome to Capital Account. Several Japanese pension funds started to invest in gold for the first time, according to the Wall Street Journal. The report claims the funds are looking to mitigate the damage of market shocks and reduce the risks associated with currencies. Until recently the pension funds invested mostly in domestic stocks and bonds. We talk to Bill Murphy and Chris Powell from the Gold Anti-Trust Action Committee about the role of gold as a hedge in world markets.
And we often discuss the role of the price mechanism and price discovery and on this show, as well as the role central banks, and private banks, play in distorting it. Whether through central bank induced ZIRP or through private banks tinkering with Libor, markets are most certainly manipulated and prices are unquestionably distorted. For years Bill Murphy and Chris Powell have made the case that the precious metal markets are no exception to the manipulation. While we see video of Queen of England touring the vaults of the Bank of England, we don’t ever see transparent disclosure of the gold leasing and transactions of central banks. And as for silver price manipulation, the CFTC’s four year investigation into silver has shed no light. We talk to Bill Murphy and Chris Powell of GATA about the latest developments in precious metal markets.
Plus, the SEC approved a JP Morgan copper ETF, the first US ETF that would allow investors to purchase copper, according to the Wall Street Journal. The ETF is backed by physical copper, and received clearance despite opposition from companies that use copper and some US lawmakers. They are concerned that the fund will allow speculators to squeeze the market, increase price volatility, and undermine price transparency for the industrial metal. We talk to Bill Murphy and Chris Powell about the impact of this new ETF.
And the Newtown school shooting unleashed tears, and renewed talk of gun control and laws. From the weapon used, the Bushmaster rifle, to big business, Lauren and Demetri talk about the reaction from Wal-Mart to Wall Street in today’s “Loose Change.”