-- Posted Friday, 16 September 2011 | | Disqus
Dear Friend of GATA and Gold:
Is GATA really asking too much in seeking acknowledgement that the gold market is manipulated largely surreptitiously but sometimes openly by Western central banks? Is nearly everybody in the world's financial establishment and financial press an absolute moron or corrupt?
Resounding answers in the affirmative were delivered this week by Debbie Carlson of Kitco News and the research director of Thomson Reuters GFMS, Neil Meader.
Having interviewed Meader about this week's coordinated helicopter drops of central bank dollars on European banks and the devaluation of the Swiss franc, Carlson writes: "Central bank intervention into currency markets can be supportive to gold prices, said a director at a metals consultancy firm. ... 'As soon as it was apparent it would be managed, a lot of fund managers quit the franc,' he said. The currency's role as a safe haven dimmed, which gave gold's safe-haven status a brighter shine."
Except, of course, the exact opposite happened simultaneously. That is, just moments before the Swiss franc's devaluation was announced, there was a sudden immense selling of gold and the gold price began a crash that continued through this week despite the financiall market turmoil in Europe.
Of course this was utterly counterintuitive, insofar as the Swiss franc's demise as a safe-haven currency left, supposedly, only gold.
Carlson paraphrases Meader this way: "Gold can benefit from intervention because investors may decide to leave a market that is being managed, rather than one which is allowed to trade according to market forces." Yes, but why stop with the Swiss franc when the pounding of gold happened at the same time? Gold is a currency too, and might central bank intervention that works against the Swiss franc not also work against gold?
As South African gold market analyst Peter George said at GATA's Gold Rush 21 conference in Dawson City, Yukon Territory, Canada, six years ago, "In the last 10 years the central banks have effectively shown that when there's a real crisis, gold actually goes down, and it's so blatant, it's a joke":
http://www.gata.org/node/20
But even with "safe haven" gold crashing along with the destruction of the other "safe haven," the Swiss franc, central bank intervention against gold appears never to have crossed the mind of Kitco's interviewer or the GFMS analyst. Indeed, who in financial journalism has even tried putting a question to a central banker about the curious smashing of gold simultaneous with the devaluation of the Swiss franc?
With financial analysis and journalism like this, the world will remain an easy mark for the totalitarians:
http://www.kitco.com/reports/KitcoNews20110915DeC_interview.html
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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-- Posted Friday, 16 September 2011 | Digg This Article
| Source: GoldSeek.com
