-- was Elliott Wave Trader's Avi Gilburt sneering about GATA?
Gilburt wrote of yesterday's trading: "As the metals market dropped today, I am quite certain that the evil manipulators have become the talk of the town once again. No one speaks of them when we are rising, because that is how the market is supposed to move (cough, cough). But now that we have dropped, it is 'clear' that it must be manipulation."
Gilburt adds that yesterday's smashing of gold and silver was ordinary market action predicted by his magic charts of technical analysis -- and maybe it was. But how does he or anyone outside central banking know that the market action had nothing to do with government intervention? Can Gilburt's charts penetrate trading rooms of the Federal Reserve Bank of New York, the Bank of England in London, the Banque de France in Paris, the International Monetary Fund in Washington, and the Bank for International Settlements in Basle?
Of course GATA has no entree into those trading rooms either. But we have compiled some documents from those institutions, confirming that they are heavily and surreptitiously intervening in the gold market or in facilitating the surreptitious intervention of other central banks and government agencies: http://www.gata.org/node/14839
According to the director of market operations for the Banque de France, Alexandre Gautier, this surreptitious trading occurs "nearly on a daily basis":
Since central banks have the power to create infinite money, why would they bother holding and trading gold, except as has confirmed candidly in the annual reports of the Reserve Bank of Australia -- "primarily to facilitate policy operations in the foreign exchange market"?:
Gilburt is mistaken again when he writes that "no one" speaks about gold market manipulation when the price is rising. For many years, with the price rising and the price falling, GATA has addressed the possibility of an upward revaluation of gold by central banks, another form of market manipulation.
For example, since 2007 GATA often has called attention to the 2006 paper on this subject by the Scottish economist Peter Millar, who argued that central banks will have to revalue gold upward by as much as 700 percent to avert a catastrophic debt deflation:
We also often have called attention to the 2012 study by the American economists and fund managers Paul Brodsky and Lee Quaintance, who maintain that the major central banks are engaged in redistributing world gold reserves among themselves in advance of such an upward revaluation:
And we often have called attention to the 2008 appearance on Business News Network in Canada by former Federal Reserve Governor Lyle Gramley, in which he asserted that the Fed might reliquefy itself by upwardly revaluing gold:
Yes, manipulation of the gold market by central banks can be upward as well as downward, and since it defeats free markets either way, it's objectionable either way.
Odds are that since they are the biggest participants in the gold market, central banks know a lot more about the origin of yesterday's price smash than Gilburt's magic charts know. The central banks aren't telling and Gilburt isn't asking them and making a point of their refusal to answer, since it might be very bad for his newsletter business if anyone outside central banking knew exactly how central banks were intervening at any moment. For then people also would know that the data Gilburt is analyzing is no more genuine than Pokemon characters.
CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. CPowell@GATA.org * * *
Join GATA here:
New Orleans Investment Conference Wednesday-Saturday, October 26-29, 2016 Hilton New Orleans Riverside New Orleans, Louisiana http://neworleansconference.com/
Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.