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Fleckenstein is surprised by gold's price action but he shouldn't be

Section: Daily Dispatches

10:35p ET Wednesday, December 14, 2016

Dear Friend of GATA and Gold:

Interviewed by King World News, money manager Bill Fleckenstein of Fleckenstein Capital acknowledges being confused by today's price action in gold and silver.

"As for the metals," Fleckenstein says, "I'm kind of surprised they were hit as hard as they were. ... I don't really see why gold should act so terribly."

On his company's internet site --

-- Fleckenstein responds this way to a question asking whether there is a "plunge protection team" and whether the stock market is manipulated:

"The Working Group on Financial Markets (a.k.a the 'PPT') does exist. But the thesis that it or any other part of government somehow manipulates the stock market on a day-to-day basis is not credible, largely because there are too many adversarial moving parts and keeping such activities a secret with so many people involved over the years would be impossible."

... Dispatch continues below ...


Canadian Government Issues Key Water License
for Seabridge Gold's KSM Project in British Columbia

Company Announcement
Monday, November 21, 2016

TORONTO -- Seabridge Gold Inc. (TSX: SEA) (NYSE:SA) announced today it has received a license from the Government of Canada required for the construction, operation, and maintenance of the water storage facility and associated ancillary water works at its 100 percent-owned KSM Project in northwestern British Columbia.

The license, as authorized within the International Rivers Improvement Act, regulates all structures and activities situated on transboundary waters shared with the United States that have the potential to affect water quality and quantity. The Water storage facility and its ancillary water works (water diversion ditches and tunnels) are the primary water management control systems for the KSM Project. These facilities separate water that has not contacted mined material from so-called contact water originating from disturbed areas of the mine site and then contain the contact water prior to treatment and eventual release to the receiving environment.

These facilities are situated on Mitchell and Sulphurets creeks, tributaries of the transboundary Unuk River system that flows into Alaska. The license was granted for a term of 25 years under the International Rivers Improvements Regulations as administered by Environment and Climate Change Canada. ...

... For the remainder of the announcement:

Yes, keeping market manipulation on such a scale a secret may be impossible. Maybe that's why it's not a secret at all. But Fleckenstein sounds as if he hasn't been following the financial news for a few years, not even for the last few days, during which the already infamous Deutsche Bank transcripts of market rigging were reported. As for rigging of the gold market by government, that hasn't been a secret for a long time either. Indeed, too many people have been involved for it to stay secret, and many official documents of that rigging have been compiled by GATA here:

So why is Fleckenstein confused and surprised about the gold price? Gold never does what it is supposed to do -- because central banks are always surreptitiously intervening in the gold market. To use the words of the director of market operations for the Banque de France, Alexandre Gautier, central banks are secretly intervening in the gold market "nearly on a daily basis":

Just because Fleckenstein doesn't know something doesn't make it a secret. It just makes him ignorant, and maybe too arrogant to care.

His befuddled comments to King World News today can be found here:

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

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