GATA: U.S. Government Suppressing Gold Price

Gold and silver rose marginally yesterday as the dollar again fell. Gold initially surged to over $914/oz (from $901/oz) prior to determined selling capped the price and saw it fall again below the psychologically important $900/oz mark. Silver was again more resilient and rose 2.8% to $13.40/oz. Both have gradually eked out gains in Asia and early European trading.

Concerns about the international financial system and their implications for the dollar and other currencies and inflation going forward look likely to see gold remain firm for the foreseeable future. The central bankers and politicians' mantra of “inflate or die” will likely soon lead to the emergence of real inflationary pressures.

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Richard Russell, the venerable and highly respected newsletter writer, wrote overnight of how all markets including the gold market appear to be being manipulated at the moment. The government is on record regarding intervening and manipulating the bond market through purchases of their own bonds.

Russell concurs with the Gold Anti-Trust Action Committee (GATA) that elements in the US government are suppressing the gold price through financial proxies in order to maintain faith in the dollar and US government debt. GATA’s credibility was recently greatly enhanced when their long held but disparaged assertions that the Chinese Central Bank was accumulating gold were proven correct (the commonly-accepted World Gold Council and GFMS gold holding data was proved incorrect).

GATA are meeting press in London this week and should their contentions receive a fair hearing in the media it could have material impact on the price.

Besides the strong fundamentals, technically gold is looking better and better with a bullish reverse head and shoulders formation being traced out which would suggest gold’s lows have been reached. A close above $1,010/oz would be very bullish but first a close above $967/oz is necessary.

Disclosure: No positions.

Comments

[GMiki1]

A Short History of the Gold Cartel by James Turk

www.kitco.com/ind/Turk...

It's a straightforward piece on how the manipulation is effected and who the players are.

2009 May 06 10:23 AM

[andypandy]

Although the fact that demand for gold and silver is way up yet prices remain relatively low gives some credibility to the manipulation speculation. However .I view manipulation to be somewhat close to conspiracy theories, so I have a difficult time believing the charges... Even so, I'm a gold bug, and I like gold and silver long ter

2009 May 06 10:50 AM

[DONE_SONZ]

I have zero faith on any fiat currency,no matter what price tag it reads.

2009 May 06 10:59 AM

[Spike7878]

Whats wrong these days in people believing that Conspiracy's do happen or do these people that don't think it can happen just Trust Government 100% ? Its amazing how the news media made this Word not respected any longer and drove that disrespect into some peoples brains.

How could you believe in a Conspiracy if you don't know whats going on?

2009 May 06 11:44 AM

[User 357705]

The price of "x" is being manipulated. Just substitute whatever value floats your boat for "x". The price of everything, especially those "products" the financial types get their little piece of, are manipulated. Please provide some information I can use.

2009 May 06 12:17 PM

[capt Brian]

I have been hearing the same old songs for years and years. Go back, read any newsletter that makes money if gold and silver go up. Yes it will go up. Yes it will go down. JUST like anything else. What everyone is searching for is when.

It doesn't matter. Go with the flow. Don't try swimming against the current.

When the mkt is in such disarray, it is time to get into cash, and stay put quit worrying about it. Study, listen, learn, observe, BUT stay out until there is a current you can swim with.

I am in cash, physical metals up to my nose...(but not over 10%) of my net worth. I simply don't think the "market" has repaired itself because the government is saying so. In fact, what ever they are saying, I would be bent to go against it. (Investment wise)

Take a deep breath brother, whether you are on my side believing in inflation in the 10 - 20% per year starting now, or you think Obamma and his crew have it right for the recovery I am not gonna argue with you.

BUT, I will say, if you prepare for both eventualities, you will be in the few people grinning. You will feel when you are properly postioned. A calm will fall over you, food will be eaten slower, drinks last longer, and other things will begin to emit aromas or pleasure not stress.

Pay down your debt, sell ALL stocks, (maybe a short, try (QID) or even (FAZ) if u need some excitement) but for the rest, call a Met life guy and buy a 3 year def'd annuity paying 7.25%, compounded, and if the mkt goes up, so will it. if it goes up more than 7.25 from your purchase date, so will it. And it will ratchet up so no losses of gains are possible. * check out small print about anniversary dates etc.

Happy hours to you.

Capt Brian

2009 May 06 12:44 PM

[Vuke]

Everybody and his uncle is trying, or would like to try, to manipulate gold down in order to get more of it on the cheap.

This benefits the fiat suppliers so some are happy to supply it on lease. In such an important commodity it's actually beneficial to have a controlled rise as it allows everyone to get involved.

A world gold market seems to be evolving before our eyes in which everyone may shelter while fiat currencies drink the hemlock.

2009 May 06 12:49 PM

[Plebian]

Wondering why CEF is dropping today (5/6), while SLV and GLD are up quite a bit. The short interest in CEF in recent months has been growing exponentially (unlike SLV and GLD):
Short interest Short interest ratio Short interest shares
Apr 09 2009 0.8 1,522,403
Mar 26 2009 0.8 1,057,724
Mar 10 2009 0.3 521,043
Feb 24 2009 0.1 312,832
Feb 10 2009 0.3 251,177

Strange behavior?...

2009 May 06 02:32 PM

[Jake Towne]

Dear andypandy -
I'll just list the same link on the GATA theory that convinced me - yes, it is a theory still, and takes awhile to read through, but geez, the evidence being accumulated is pretty massive. Not saying it will convince you as well, but take a look if you havent already

gata.org/node/6519


On May 06 10:50 AM andypandy wrote:

> Although the fact that demand for gold and silver is way up yet prices
> remain relatively low gives some credibility to the manipulation
> speculation. However .I view manipulation to be somewhat close to
> conspiracy theories, so I have a difficult time believing the charges...
> Even so, I'm a gold bug, and I like gold and silver long ter

2009 May 06 04:04 PM

[Plebian]

Figured out why CEF went down today (5/6)... The (also Canadian) GTU fund issued shares today at big 'discounts' (super low premiums), so people were selling CEF to grab GTU at very cheap prices. Both will go up nevertheless. Should keep an eye out for when new shares of CEF and GTU will be issued in the future, to purchase as cheapest possible prices. Just wish there were a Canadian PM fund that only holds silver...

2009 May 06 04:49 PM

[mkt-student]

Can't argue with gold's performance in the tables above.
GATA seems to be managed by quality people.
RR has stood the test of time.
Good Story

2009 May 06 05:40 PM

[andypandy]

I read the article, and some of the links... I've read these claims before, and I want to believe them, but I just wont let myself.


On May 06 04:04 PM Jake Towne wrote:

> Dear andypandy -
> I'll just list the same link on the GATA theory that convinced me
> - yes, it is a theory still, and takes awhile to read through, but
> geez, the evidence being accumulated is pretty massive. Not saying
> it will convince you as well, but take a look if you havent already
>
>
> gata.org/node/6519

2009 May 06 10:03 PM

[Francis Schutte]

Gold will go up when the time has come. Whatever is written or manipulated (for even Blind people can see it), the market has the last say. The day is close where the Physical market will clash with the paper market. We all know what is to happen at that point. In the mean time, BUY signals are accumulating like flies on marmelade. Silver, Oil and Copper are of did brake out. Gold and silver mines show Golden crosses on the MA and reversed HS patterns...It is all over the place....just give it some more time...

2009 May 07 02:28 PM

[andypandy]

If shit hits the fan are gtu and cef safe?


On May 06 02:32 PM Plebian wrote:

> Wondering why CEF is dropping today (5/6), while SLV and GLD are
> up quite a bit. The short interest in CEF in recent months has been
> growing exponentially (unlike SLV and GLD):
> Short interest Short interest ratio Short interest shares
> Apr 09 2009 0.8 1,522,403
> Mar 26 2009 0.8 1,057,724
> Mar 10 2009 0.3 521,043
> Feb 24 2009 0.1 312,832
> Feb 10 2009 0.3 251,177
>
> Strange behavior?...

2009 May 07 08:31 PM

[Sakata]

"Russell concurs with the Gold Anti-Trust Action Committee (GATA) that elements in the US government are suppressing the gold price through financial proxies in order to maintain faith in the dollar and US government debt. "

Did anyone notice that it is not just gold that is being suppressed? GATA itself is. Check out this page: en.wikipedia.org/wiki/..., which documents the deletion of the wikipedia page on GATA.

2009 May 16 10:52 PM

[Jeff Nielson]

There is no "issue" about whether gold is being manipulated. An official with the Bank of International Settlements has already acknowledged this explicitly. Alan Greenspan did so, indirectly, in a speech where he stated that to calm markets, "Central Banks stood ready to lease [i.e. dump] gold in ever increasing amounts."

Finally, anyone who follows the Crimex futures trading sees all the evidence they need on a regular basis, with "short" positions far larger than the Hunt Brothers ever had in silver (on the "long" side) - when they were formally accused of "cornering the market".

For any interested, here's a link on GATA effort's to get the mythical gold at Fort Knox audited: www.bullionbullscanada...

2009 May 16 11:17 PM