LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines to Launch New Website

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA


GoldSeek Web

Gold's sharp rise throws Financial Times into an erroneous sulk

By: Chris Powell, GATA

 -- Published: Wednesday, 29 July 2020 | Print  | Disqus 

Dear Friend of GATA and Gold:

Appended is tomorrow's editorial in the Financial Times, which, taking note of gold's sharp rise in price, begins with a factual error, goes on to sulk for six paragraphs, and concludes with the hope and expectation that gold will go back in the dumpster eventually.

The error beginning the editorial is the assertion that gold doesn't pay interest. Gold doesn't automatically pay interest like a bond because it doesn't have to, since holding gold incurs no risk. An ounce of gold today will be an ounce of gold tomorrow, whatever happens in the world, even as many borrowers have failed and even currencies have failed as the regimes issuing them have collapsed.

Gold is money in itself and no one else's liability. But gold can pay interest if its owner wants to lend it, just as fiat currency cash can pay interest and just as central banks themselves have charged interest in lending their gold to investment banks for hypothecation and price suppression.

The FT attributes gold's rise to "uncertain times" -- geopolitical tensions and the failure of the U.S. government to get the virus epidemic under control. The FT offers not a word about what is likely a bigger cause -- the implosion of the fractional-reserve gold banking system built in part on the central bank gold leasing the FT also fails to acknowledge.

If the FT thinks the gold price is unpleasantly high now, what will the price be if the world ever realizes that most of the gold it thought it owned doesn't exist and never did? If the world ever finds out, it may fairly ask why the FT never reported it, though documentation of central bank gold price suppression policy has been delivered to the newspaper many times over the last 20 years without prompting the newspaper to put a single critical question to any central bank.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Gold's Rise Is a Sign of Uncertain Times

From the Financial Times, London
Tuesday, July 28, 2020

Gold is not a particularly good investment. It yields no interest and pays no dividend. The only way its owners can earn a return is if other investors value the shiny metal more tomorrow than they did today. For a "haven" asset, which investors can use to preserve capital in times of crisis, it is remarkably speculative; aside from some niche industrial uses, most of the permanent demand comes from jewellery. Its rise in value this week to a near-record high of $2,000 per troy ounce reflects that many other options are even less attractive, rather than any intrinsic merits.

Many traditional "safe assets," such as government bonds, similarly either yield nothing or will gradually lose their value thanks to inflation and negative interest rates. As with gold, earning a return on U.S. Treasuries relies on speculating that prices of the bonds can continue to increase. With interest rates already at virtually zero in the United States and little indication that the Fed intends to drop them into negative territory, that does not strike many as a good bet. In that situation, some investors see gold, which is less vulnerable to inflation, as more attractive.

The current rise in gold is also an indication of fear. What gold primarily offers investors is an alternative to the dollar. Adjusting for changes in overall prices, the metal has been more expensive only twice before: during 2011, when a congressional standoff over the U.S. debt ceiling and the potential for the eurozone to break up drove demand; and in the early 1980s, when a new Islamic revolutionary regime in Iran contributed to concerns that the partly oil-driven inflation of the 1970s would erode the value of the greenback. Gold's rise today once again reflects worries over the safety of investing in the world's largest economy.

The dollar has likewise lost value this week against the euro, the British pound, and the Japanese yen. Not only are geopolitical tensions with China rising -- gold's value also rose this year during a standoff between the US and Iran -- but the U.S. government continues to mishandle the pandemic. A congressional stalemate over a second stimulus package has also prompted investors to look for alternatives to the international reserve currency.

The dollar's premier status owes as much to the fact there are few good alternatives to the currency as to the greenback's own advantages. The euro, the only currency with similar standing, lacks the liquidity and depth of the greenback -- though the launch of mutual bonds to pay for the bloc's post-coronavirus recovery fund may help to change that. For some, gold is also a means to bet against fiat currencies and unrestrained money printing in general.

This is the backdrop against which the Federal Reserve, currently in an interest-rate meeting that will end on Wednesday, will announce its latest decision. The members of its rate-setting committee should ignore the decline in the dollar, which, if anything, provides relief to U.S. exporters and a bit of extra monetary stimulus. There is little, however, they can do to help the American economy at the moment. Market trading is orderly and, until the virus is contained, even cheaper money -- whether through negative interest rates or yield-curve control -- will do little to boost growth.

Gold's rise may be overdone. History suggests that it rarely maintains these sorts of levels, and the wave of fear over the future of the U.S. and world economy that propels it eventually breaks. For the moment those fears are grounded, but gold's disadvantages may soon become clear again.

* * *

Toast to a free gold market
with great GATA-label wine

Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.

Here's what the bottles look like:

Buyers can compose their case by choosing as many as four varietals from the list here:

GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?

To order a case of GATA-label wine, please e-mail Fay J Winery at

* * *

Support GATA by purchasing
Stuart Englert's "Rigged"

"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --

-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at

* * *

Help keep GATA going:

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:

To contribute to GATA, please visit:

| Digg This Article
 -- Published: Wednesday, 29 July 2020 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of 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 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, Gold Seek LLC, its affiliates or advertisers., 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, Gold Seek LLC, is strictly prohibited. In no event shall, 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.