Is GATA good or bad for the monetary metals business?


1:15p Monday, January 25, 2016

Dear Friend of GATA and Gold:

Our friend T.W. writes:

"I just read GATA's dispatch about China and the possibility of an international currency reset --

-- and I must say I am confused about all this.

"Why have I bought all this gold? I want to make a profit but being 67 years old, I wonder whether I will live to see that. I want to leave my kids some but it sounds as if the government is going to keep this market rigging going forever.

... Dispatch continues below ...


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"The dispatch says that in acquiring gold China is aiming to gain control over currency markets just like the West has. Doesn't China want profit from all that gold it has bought and told its people to buy?

"What is the sense in buying gold only to end up with metal and no profit?

"Please explain this if you can. I am not greedy but would like to make some money for my later years."

To answer T.W.:

While the huge naked short position in gold that is underwritten by governments implies the profitability of long-term gold ownership, GATA can't guarantee profit to anyone. Indeed, while GATA is often accused of being permanently bullish on gold, we are also ostracized by most of the monetary metals mining industry for conveying a message the industry is too terrified to address and for telling monetary metals investors what they are up against.

That is, GATA is good for the monetary metals business insofar as we clamor against market rigging by governments, but bad for the business insofar as we tell people that governments will do almost anything to prevent the monetary metals from being seen as money superior to government-issued money.

What investors in the monetary metals are up against is the primary interest of government, which will always be to protect and advance its own power, not to protect and advance human liberty, just as the monetary metals always have been and always will be deadly threats to government power, potential mechanisms of escape from totalitarianism.

GATA can show people how the monetary metals markets are desperately rigged by governments, how supply and demand for the monetary metals are so imbalanced that vast supplies of imaginary metal have to be created on paper to suppress their prices, and how examination of the issue itself must be suppressed, since the price suppression scheme works only if it is largely surreptitious and since the scheme heavily involves government rigging of all other major markets.

But GATA cannot predict what governments will do if enough people ever realize exactly how they are being controlled and cheated. We can only try to convey information to those who dare to receive it and to advocate free markets and limited, transparent, accountable, and democratic government.

Sorry to disappoint, but the world is quite beyond GATA's control. As we convey information, we can only hope that, at least over the very longest term, the biblical injunction remains in force: "Ye shall know the truth, and the truth shall make you free."

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

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