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Richard Russell: I'm starting to think gold is manipulated

Section: Daily Dispatches

3:53p CT Friday, November 14, 2008

Dear Friend of GATA and Gold:

A subscriber to Richard Russell's Dow Theory Letter who is a longtime participant in GATA sends the excerpt that is below from Russell's letter Thursday night. Our friend headlines the excerpt, "That Didn't Take Long." And yet Russell still got there sooner than some other worthies.

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

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From Dow Theory Letter
by Richar Russell
Thursday, November 13, 2008

I've never been a big fan of the "gold is being manipulated" thesis. However, I'm now giving the manipulation thesis second thoughts.

Most of the world's central banks are now in the process of fighting recession and deflation. This requires government spending and the production of enormous quantities of new fiat money. The last thing the central banks want is for the public to realize what they are doing.

Normally, surging gold would be the signal for the public to ask questions -- rising gold is a red flag for the fiat money creators.

It's amazing and beyond coincidence the way gold rallies and then immediately is hammered down below $740. I know that there are huge short positions in gold on the COMEX. I'm no longer a skeptic on the "gold is being manipulated" claim. Somebody is selling gold every time gold rallies toward a breakout above $870, or more properly gold at $840.

I don't think the manipulators (if there are such people) can keep it up.

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