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Is gold market an accident waiting to happen or a crime scene?

Section: Daily Dispatches

4:20p ET Friday, October 16, 2009

Dear Friend of GATA and Gold:

Market analyst Paul Mylchreest, who wrote the 2006 report for Credit Agricole's Cheuvreux brokerage house concluding that the gold market was being manipulated surreptitiously by central banks ( and, the following year, a similar report for Redburn Partners, (, has revisited the gold market in a study for his own analysis service, the Thunder Road Report.

Mylchreest examines the gold traded in the world's biggest gold market, London, and concludes that either a tiny amount of real metal is supporting a spectacular volume of paper trades, "an accident waiting to happen," or else that the world's gold supply is spectacularly larger than officially acknowledged and the London gold market has been used in recent years to launder questionably obtained gold, perhaps the fabled "Yamashita's gold" plundered from Asia by the Japanese military during World War II, in which case the London gold market is a "crime scene."

Mylchreest's report is fascinating and as conscientious as the obscurantism of the gold world allows. It's titled "Gold Market: Accident Waiting to Happen Or Crime Scene? Don't Shoot the Messenger," and Mylchreest generously has allowed GATA to post it here:

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

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