Judge’s decision in gold market-rigging case is an invitation to journalism
Dear Friend of GATA and Gold:
Regarding disclosure today that the class-action anti-trust lawsuit against the London gold price-fixing banks, brought in U.S. District Court in Manhattan, has been allowed to proceed:
1) This is only a finding that there is enough evidence to continue the lawsuit, not a finding of market manipulation.
Still, it may be very damaging to the bullion bank defendants because it clears the way for discovery and deposition — that is, clears the way for compelling the bullion banks to produce documentation and give testimony prior to trial. I have always suspected that if any market-manipulation lawsuit got past summary judgment dismissal, as this lawsuit apparently has done, the defendants would offer a lot of money to settle the lawsuit privately rather than give the world a look at their business practices. Such a look might risk incriminating many other institutions and government agencies and risk revealing more offenses.
Since this lawsuit is a class action and the nominal plaintiffs are numerous, maybe there is less chance that they can be bought off in exchange for secrecy. But at the moment there is no guarantee that the public will ever get a full accounting of any misconduct that has been going on in the gold market.
2) At least the decision to let the suit proceed should awaken the monetary metals mining industry to the issue of gold market manipulation. The industry has been catatonic, apparently too scared of the bullion banks and its own lending banks and too scared of the governments and central banks standing behind them. The industry still must decide whether it wants to die on its knees from price suppression or risk dying on its feet by struggling for free and transparent markets.
3) The decision also should awaken mainstream financial news organizations and financial market analysts to the gold market rigging issue. Gold market rigging — that is, gold price suppression — is the prerequisite for the rigging of ALL markets and it has facilitated the destruction of market economies everywhere. It has been perpetrated largely as a matter of the longstanding but surreptitious policies of Western governments, as documented by GATA. A summary of that documentation is here:
Yet as far as GATA can determine, no mainstream financial news organizations or even gold market analysts have ever tried putting to any central bank a critical question about its surreptitious involvement in the gold market. The decision is another reason for news organizations and market analysts to attempt journalism.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.