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Exposure of gold market manipulation is producing results

Section: Daily Dispatches

6p ET Sunday, April 8, 2012

Dear Friend of GATA and Gold:

Our friend J.T. writes:

"I'm sure you know by now, probably from all the e-mails and comments you've received from GATA members and other 'gold bug' types, that many if not most of us are so 'up to here' with all the information about gold market manipulation that at some level we don't even want to hear it anymore.

"We believe it. We know it. We've watched it for years. It's part of our DNA by now.

"But many if not most of us are way more than ready for you or someone else to start the new project of what to do about it.

"I no longer find much information about the manipulation to be of use. I can watch the manipulation myself. I don't need to be told anymore. I want to know what else we can do. What else is anyone else doing?

"We know that the U.S. Commodity Futures Trading Commission and the Securities and Exchange Commission won't do anything. Congress won't do anything. So who will? Are we just waiting around for something to happen, waiting for the 'delivery default' that will set off the short squeeze that probably won't happen because of either a declaration of 'force majeure' or some forced acceptance of fiat in exchange?

... Dispatch continues below ...


Golden Phoenix Discusses Royalty Mining Growth Strategy
on '21st Century Business' on Fox Business Network

Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project.

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"Your comment about finding the right 'planet' to keep our monetary metals on ( isn't helpful, as I know you know. It sounds fairly fatalistic, as though you've given up.

"There has to be more than 'physical trumps paper' because in the end, if the system isn't changed and the evil overlords are not removed from their positions of power, then 'power trumps physical' and everything else for that matter, and who cares about paper? We need to move toward freeing this country.

"Yes, knowing about the manipulation was important, but it's now on every level and increasing, not decreasing, as knowledge of it comes out. Knowledge alone has not ended the manipulation.

"Don't give up, please. GATA has the connections to start something or ramp up something that can help us all move to the next level of resistance. Others need to strap on the fatigues and weapons of truth and move out of the foxhole and join the freedom movement however we can. Knowledge is no longer enough. There must be a growing plan of action for resistance against the evil, or the evil in power will crush us and we'll find ourselves back in prison trying to console ourselves with the fact that we were right, which will be no consolation at all.

"God bless you and yours.

"-- J.T."

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Dear J.T.:

Thanks for your thoughtful note.

Yes, we in GATA are as tired of the ever-more-brazen manipulation of the markets as you are. And I agree that most people who closely follow the gold and silver markets are convinced of the manipulation or at least suspect it.

But these people are still a very tiny portion of market participants -- even a very small portion of gold and silver market participants. Otherwise nobody except government agents offering to sell would be trading the gold and silver futures markets in the West; all individual and institutional investors would have gotten out. I'm afraid that we still have many people to inform.

And yet I also think that we have informed enough people already to make a big difference in the markets. Almost certainly the Russian and Chinese governments learned from GATA about the gold price suppression scheme and the general rigging of the currency markets, and probably some other governments did too, and governments and sovereign wealth funds are having a big impact on the market.

The major acceleration of the gold price can be dated to GATA's Gold Rush 21 conference in the Yukon in August 2005, just as the major acceleration of the silver price can be dated to the presentations made by GATA Chairman Bill Murphy and board member Adrian Douglas at the hearing of the U.S. Commodity Futures Trading Commission on March 25, 2010. The charts support this assertion and the evidence is that GATA's distribution of information about the market rigging has been very productive to investors in the monetary metals. We figure that more distribution of information will productive too.

After all, look how obvious the Western central banks have had to become in the last couple of years to keep the gold price down. They used to accomplish it largely surreptitiously, but no more. The last two big interventions -- amid the devaluation of the Swiss franc last September and amid the great burst of European money printing on February 29 this year -- probably alerted more people to the scheme than GATA has, and yet GATA's alerting the first batch of people and governments likely required the market riggers to turn it up and risk exposing themselves if they were to have further effect.

We agree that U.S. government regulatory agencies won't do anything more -- can't do anything more against what is actually surreptitious government policy. But because of one courageous commissioner the CFTC did do something that proved crucial -- it held the March 2010 hearing and let GATA be heard -- heard, as it turned out, around the world.

We agree that the underlying issue here is liberty -- for Americans and for everyone else. Gold and silver are nothing to us as inert natural elements, mere pieces of metal; we are not idolaters. But as free-trading, independent, international currencies, they are essential means of achieving liberty, and there is probably less understanding of this than there is understanding of the price suppression scheme. So we still have to spread the word in this respect as well -- and we will.

In addition to the daily dispatches broadcast from GATA's Internet site, our representatives continue to speak at major financial conferences around the world. Murphy will be speaking at the Las Vegas conference in May. We both expect to be at the Vancouver conference in early June. I'm planning to speak at three conferences in Asia later that month, and maybe two or three more in Asia if it can be arranged. Asia is especially promising territory for us, as investors and the news media there both are more understanding of gold and less influenced by the Western central banks.

As GATA is a federally tax-exempt civil rights and educational corporation, we can't get involved in politics directly or spend any substantial resources advocating legislation; with good reason such activities are against federal law for tax-exempt groups. But we hope that our work will engender good citizenship not just among Americans but among people everywhere -- and if Americans are looking for a political movement to achieve free and transparent markets, particularly in the monetary metals, a prominent presidential candidate already has made this one of his major issues. People so inclined can join his campaign.

We'll keep doing what we can, even as people may forget that we're really just a small, non-profit organization with no full-time staff. As the World Gold Council has declined to acknowledge much less resist government attacks on gold, it sometimes may seem that GATA has primary responsibility for the gold price and the gold cause. As no one else is upholding it, we can accept the latter responsibility for the time being, but people have to understand that we're no stronger than they make us with their contribution of funds, information, and agitation. The more support we get -- particularly financial support -- the more we'll do.

We readily admit that we don't have a sure-fire plan to liberate the world, that we don't know how things will turn out, that they may turn out very badly, and that the power arrayed against us is vast. But we'll keep fighting that power because it is based entirely on lies and succeeds only through deception and thus is critically vulnerable to exposure. For "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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