-- Published: Monday, 29 June 2015 | Print | Disqus
Dear Friend of GATA and Gold:
No one who has followed GATA for a while could have thought last night, as Greece collapsed financially and the foundations of the European Union and its currency were shaken, that gold would do anything but decline or be held steady under surreptitious central bank intervention in the markets.
But at least today's price action, the most anomalous since the otherwise inexplicable smashes down in April 2013, may awaken a few of the more oblivious analysts who purport to cover the gold market.
A couple of old observations on this point may be worth revisiting today.
At GATA's Gold Rush 21 conference in Dawson City, Yukon Territory, in August 2005, the late South African investment adviser Peter George said: "For the last 10 years the central banks have effectively shown that when there's a real crisis, gold actually goes down, and then it's so blatant, it's a joke."
George's comment is preserved on video at the 38-second mark in the top frame here:
And as your secretary/treasurer has remarked for years, as he did again two years ago --
-- "War and the threat of war ... actually send the gold price down because they prompt even more intervention by central banks. Indeed, if the Northern Hemisphere was destroyed in a nuclear war, the U.S. Exchange Stabilization Fund would sell enough futures contracts in Johannesburg, Sydney, and Rio de Janeiro to knock the gold price down by 25 percent; CPM Group's Jeff Christian would attribute the crash to new hedging by mining companies expecting further declines in price, though the war had brought mine production to an end in the Northern Hemisphere; and what remained of the mainstream financial news media would quote Christian without putting a critical question to him or to any central bank. (Actual journalism is never attempted in regard to gold.)"
Zero Hedge today remarks acidly on this phenomenon in an item headlined "Gold Tumbles Despite UK Mint Seeing Europeans Rush to Buy Bullion":
If you know anyone in the monetary metals business or financial news media who doubts this or doesn't understand it, you can send him GATA's summary of the purposes, history, and documentation of the Western central bank gold price suppression scheme:
And if you're invested in monetary metals mining companies that fail to acknowledge this scheme and agitate against it -- that is, most mining companies -- you might ask yourself why.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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-- Published: Monday, 29 June 2015 | E-Mail | Print | Source: GoldSeek.com