The gold price was $35 for years -- and suddenly there was no market at all


9:49p ET Thursday, April 4, 2013

Dear Friend of GATA and Gold:

Another day, another interview for your secretary/treasurer -- more preaching to the choir and maybe the stray bystander near the church door -- this time with Jessica Lau of Sprott Money News, who posed questions about the Western central bank gold price suppression scheme, the debacle in Cyprus, bitcoin, and a lot more. The interview is about a half hour long and audio is posted at YouTube here:

A very rough transcription is posted at Sprott Money's Internet site here:

Discouraged as many gold and silver investors may be after the pounding of the monetary metals over the last few days, we must realize that these poundings are usually indications of desperation by Western central banks, which now stand on the brink of all sorts of financial disaster and explosive money creation.

... Dispatch continues below ...


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GATA's dear friend, the Mister Gold of South Africa, Peter George, who died the other day, may have put it best at GATA's conference in Dawson City in Canada's Yukon Territory in 2005: "In 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." (See the first video here:

Indeed, if there is nuclear war over Korea, "gold" -- that is, the kind found in the futures markets -- will fall another $100 even as the gold that has any specific gravity to it is nowhere to be found.

Well, maybe you can't blame the Western central banks; they saw their opportunities and they took them -- opportunities like a gold mining industry that for the most part is dumber than the rocks it would dig out of the ground, too dumb to defend itself, purporting to be represented by the World Gold Council, which exists only to make sure that there never is a world gold council; and investors who claim to be seeking protection against the monetary debasement all around them but who exchange their paper and digital money for paper and digital claims on metal that doesn't exist -- claims that, just like paper and digital money, can be effortlessly created in infinite amounts.

As long as most gold investors invest like that, the gold price suppression scheme can go on forever -- and it can look that way here in the West. But the East is another story; the offtake of metal is substantial there. And as your secretary/treasurer remarked in that interview with Sprott Money News, change can be shockingly abrupt with gold, as it was at the end of the London Gold Pool.

The price was $35 one day -- the price it had been every day for years -- and the next day, March 15, 1968, there was no market at all. The gold that Western central banks were willing to dishoard to control the price had simply run out:

With gold swaps, leases, derivatives, and a load of secrecy and deception demonstrating their contempt for democracy, the Western central banks have prolonged the current round of their perpetual war against gold a bit more than some of us thought they could. But they have been found out --

-- and they are losing, and if we don't live to see them beaten and the world liberated from them, our children probably will. Good enough. So we press on in the morning.

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

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