Korelin Economic Report asks: Is gold price manipulated?


12:01a ET Wednesday, December 19, 2007

Dear Friend of GATA and Gold:

At the Vancouver Resource Investment Conference in June, Al Korelin and Paul Warren of the Korelin Economic Report asked three top market analysts -- Ian Gordon of Bolder Investment Partners, Jay Taylor of J. Taylor's Gold and Technology Stocks letter, and Roger Wiegand of the Trader Tracks letter -- if they believed that the price of gold is manipulated by central banks and their agents. The proposition was obviously true to them all, even as it is still not obviously true to a few market analysts. But increasingly people are acknowledging the obvious, and the video of the Korelin interview may help persuade more still. You can find it in two parts at the Korelin Economic Report site here:


As you watch the video, notice the panelists' reference to the gold price at the time, about $630, and then compare it with today's gold price, about $170 greater at $800 -- a 27 percent increase in six months, or about 4 1/2 percent per month. Then ask yourself why so many precious metals investors are always in such a foul mood.

Is it because an annual return of 50 percent is so disappointing? Or is it because more investors in this sector are invested not in the metal itself but in mining shares, which have not yet caught up with the gold price and which, unlike gold itself, are also harmed by inflation, which increases mining costs?

In any case, it seems that if gold doesn't soon do better than 4 1/2 percent per month, some precious metals investors may start jumping out of upper-story windows, the exit once reserved for another sort of investor.

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

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