by Chris Powell, Gold Seek:
Dear Friend of GATA and Gold:
Somebody smashed the gold price out of the blue today, with no particular news developments to explain it:
Zero Hedge asserts that the smash was accomplished by the dumping of $5 billion in paper gold:
King World News charges that it was done by the Bank for International Settlements —
— and while KWN offers no particular evidence for its charge, that the BIS is intervening surreptitiously in the gold market nearly every day on behalf of its client central banks long has been documented well enough by the bank’s annual reports —
— by statements by BIS officers —
— and by the BIS’ own advertising:
Putting it all together best today may have been market analysts John Brimelow and James McShirley, who contribute frequently to GATA Chairman Bill Murphy’s daily “Midas” commentary on the gold market at LeMetropoleCafe.com.
Brimelow, editor of the John Brimelow Gold Jottings letter, today reminisced about the failure in the 1990s of the 200-day moving average as a market indicator:
“Gold veterans will remember that it was in the mid-90s that the Frank Veneroso school judged there to be persistent central bank intervention in gold and began to wonder how far it extended into other markets. This concept is less controversial now than it was 20 years ago.”
“The last two months have been a microcosm of the past five years. Gold is being mugged in plain sight, right in front of the cops, with no media bothering to report the crime. It sounds like a broken record but clearly this rigging is untenable. Epic rallies come from markets that have become distorted. Gold and silver aren’t merely being distorted; they are being suppressed to small fractions of their true net worth. Tsunamis come to mind when predicting the outcome.”
For years GATA’s premise has been that this market rigging could be defeated if it was documented, exposed, and publicized well enough. But while many people in the monetary metals industry have come to understand what is happening, few have acknowledged it in public. And while the documentation has been presented and explained to many financial news organizations, none in the mainstream have dared to pursue it seriously.
Even some mainstream financial news organizations that have approached GATA professing an interest in the subject have dropped it quickly and fled upon realizing how sensitive governments are about it.
Yet at least two major governments, those of Russia and China, have acknowledged knowing all about gold price suppression and even about GATA’s work particularly:
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