FOFOA really does a good job of explaining how this happens.
The BIS basically wakes up one day and says, 'Hey, we buy gold for $55,000 and we sell it for $56,000.
Boom. Paper markets for gold at $1,400 collapses and we have a new price for gold.
Bread is still $2 a loaf. Gas is still $4 a gallon. And everyone holding gold gets a nice bump in real wealth.
Why does the BIS do this? Read the article and find out!!