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'Countless' analysts know gold is manipulated, but most are invisible

Section: Daily Dispatches

9:40p ET Wednesday, January 20, 2010

Dear Friend of GATA and Gold:

The blogger known as Friend of Friend of Another who elaborates on the famous "Another" postings at the old forum this week remarked in new commentary that "today countless gold analysts around the world acknowledge that gold is a manipulated item." FOFOA's new commentary is headlined "Gold: The Ultimate Hedge Fund," and you can find it at his blog here:

While GATA is glad to hear that "countless" gold analysts agree with us, the GATA delegation that has just returned from the Vancouver Resource Investment Conference would have had no trouble counting such analysts there -- maybe a half dozen outside the GATA delegation itself, with Sprott Asset Management Chief Investment Strategist John Embry being the most eloquent. (We hope to direct you to the text of Embry's remarks soon.) But if you can find even one or two such gold price suppression scheme-acknowledging analysts at, say, the annual gold mining conferences in New York, Denver, and San Francisco or the PDAC conference in Toronto, please let us know, as we're never invited there, and all we hear from those parts is ridicule.

Further, FOFOA seems to think that it's some sort of revelation for him to note that the gold price has failed to keep pace with the vast inflation of the world money supply because central banks and their investment house agents have created derivative instruments, paper gold, to match most paper gold demand. He also seems to think that it is a revelation that only buyers taking possession of real metal can hamper the scheme.

But the former observation was made comprehensively in regard to most commodities back in 2001 by the British economist Peter Warburton in his brilliant essay, "The Debasement of World Currency: It Is Inflation, But Not as We Know It," which remains crucial to an appreciation of the world financial system and can be found at Gold-Eagle here:

The latter observation, about taking delivery of metal, has been made by GATA, Jim Sinclair, and others for years, with GATA board member Adrian Douglas hammering at it lately in several incisive essays, like these:

Of course FOFOA may mean that "countless gold analysts" acknowledge privately that gold is manipulated, because acknowledging it publicly can be bad for business or even dangerous. If that is what FOFOA means, we won't argue. After all, his own anonymity is part of the proof. While we can admire his scholarship, thoughtfulness, and eloquence, that still leaves us bearing alone the ridicule for expressing what everyone is supposed to know already, for re-enacting constantly, in "Groundhog Day" fashion, the next-to-last scene from "The Emperor's New Clothes."

We can get lonely in this and would be glad of some company from those "countless" gold analysts. So come out, come out, wherever you are.

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

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