Adrian Ash: How central banks control the gold price

Section:

4:20p ET Monday, October 1, 2007

Dear Friend of GATA and Gold:

Prompted in part by Citigroup's new report acknowledging that central banks have been suppressing the price of gold (http://www.gata.org/files/CitigroupGoldReport092107.pdf), Adrian Ash, research director for Bullion Vault, has written a wonderful essay expressing surprise that this ever should have been doubted. Ash's essay is titled "How Central Banks Control the Gold Price," it mentions GATA and last year's Cheuvreux report endorsing GATA's work (http://www.gata.org/files/CheuvreuxGoldReport.pdf), and it can be found at GoldSeek here:

http://news.goldseek.com/GoldSeek/1191260162.php

Ash's point was also made by Bill King in today's edition of The King Report as he commented on Ambrose Evans-Pritchard's story about the Citigroup report in today's London Telegraph (http://www.telegraph.co.uk/money/main.jhtml;jsessionid=OOVX3JZGGB0DNQFIQ...). King wrote: "How can anyone with a modicum of understanding about sovereign currency and interest rate intervention not know that central banks manipulate gold prices?"

Good question. GATA has been asking it for years. And yet even most of the august market analysts who speak at mining conferences refuse to acknowledge the manipulation of the gold market, as do most executives of mining companies. Now even Citigroup is ahead of all of them in what is supposedly their own field!

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

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