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'Counterintuitive' sure is the word for the gold market

Section: Daily Dispatches

1:53p ET Wednesday, November 28, 2012

Dear Friend of GATA and Gold:

Today's commentary by Ross Norman of Sharps Pixley Ltd., the London bullion brokerage, notes today's "counterintuitive" smash down in gold on the opening of the New York futures market, which he writes was probably a "short play" trying to trigger sell stops with the sudden dumping of 24 (paper) tonnes of metal:

Of course GATA partisans are tediously familiar with such "counterintuitive" moves in gold. At GATA's Gold Rush 21 conference in Dawson City, Yukon Territory, Canada, in August 2005, South African gold market analyst Peter George said: "In the last 10 years central banks have effectively shown that when there's a real crisis, gold actually goes down. It's so blatant, it's a joke.":

Four years ago GATA reported that in his memoris former Federal Reserve Chairman Paul Volcker had justified central bank intervention to suppress the gold price during an international currency revaluation:

This year the German freelance journalist Lars Schall tracked Volcker down and extracted from him a grudging defense of central bank intervention against gold to prevent "exchange rate instability" at a "critical point":

For many months now the world financial system has been in a seemingly daily crisis with practically every moment being a "critical point" and round-the-clock market interventions by central banks. But the mainstream financial news media, the market watchers most quoted by the media, and the technical analysts never get it, perhaps because their jobs won't let them get it. The first two groups would risk dismissal for telling the truth or even raising suspicions. And the technical analysts would realize that their whole careers had been made meaningless by market rigging.

Any of them could substitute for the late Leslie Nielsen playing the bumbling police detective Frank Drebbin in this 33-second excerpt from the movie "The Naked Gun" posted at YouTube and titled "Nothing to See Here":

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


Opinion Around the World Is Changing
in Favor of Gold -- Find Out Why

When Deutschebank calls gold "good money" and paper "bad money". ...

When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ...

When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ...

When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ...

When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ...

World opinion is changing in favor of gold.

How can you learn why and what it will mean to you?

Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard."

Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him."

To buy a copy of "The True Gold Standard," please visit:

Join GATA here:

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Sunday-Monday, January 20 and 21, 2013
Vancouver Convention Centre West
Vancouver, British Columbia, Canada

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Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and, Fred at 602-799-8378 and Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at