by Chris Powell, GATA:
Dear Friend of GATA and Gold:
Let’s welcome fund manager and market analyst Mike “Mish” Shedlock to the growing ranks of those who once dismissed complaints of gold market manipulation but who now find sanctuary behind admissions that “everything is manipulated.”
In his latest commentary, headlined “Reader Question: Is Gold Manipulated?” —
— Shedlock dutifully disparages GATA before acknowledging some curiosity about gold’s recent “middle-of-the-night plunges at illiquid times.”
“It would not surprise me one bit,” Shedlock writes, “if the market makers manipulated gold to its previous high with the GATA advocates screaming all the way that the MMs were holding the price down.
“It’s tiring to hear the exact same manipulation charges no matter what gold is doing. And such screaming has gone on for years, even though gold has quadrupled since 2000 (certainly far more than the major stock market indices).
“That said, someone sure benefits from these the middle-of-the-night plunges at illiquid times. So put me in the group wondering who that is, and what if any laws were violated in doing so. And if laws were violated, let’s have an accounting, as well as a look at the laws.”
Of course Shedlock is misleading here, since GATA has not been complaining about ordinary market makers in gold but rather about largely surreptitious intervention in the gold market by central banks.
Shedlock is additionally misleading by failing to acknowledge that this intervention and a policy of price suppression particularly could be implemented with a gradually rising gold price to maintain what central banks like to call “orderly” currency markets, which are something other than free markets.
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