What’s ailing gold — futures market rigging or newsletter bullishness?
What’s ailing gold — futures market rigging or newsletter bullishness? by Chris Powell – GATA
Dear Friend of GATA and Gold:
Writing for the Daily Reckoning, fund manager and author James G. Rickards says supplies of real gold are tight, prices are being suppressed by manipulation of gold’s futures market, regulators have signalled that “this is a big boy’s market and players can do whatever they want as long as it’s not too blatant,” the June 26 flash crash in gold was probably undertaken to knock gold call options out of the money a day before expiration, and market manipulations always fail eventually.
Rickards does not say whether “eventually” will encompass the lifespan of any of his readers, nor whether, even if it does, it will benefit anyone much, insofar as the rigging of stock prices on the Berlin Bourse during the National Socialist regime in Germany ended only with the razing of the city and much of the rest of the country in May 1945:
Rickards’ commentary is headlined “A Tale of Two Gold Markets” and it’s posted at the Daily Reckoning here:
Meanwhile MarketWatch financial writer Mark Hulbert argues that the gold price is being kept down not by manipulation of the futures market or by constant surreptitious intervention by central banks but by the excessive bullishness of gold newsletters, whose advice he has been monitoring for many years. But of course gold newsletter writers are always going to be disproportionately bullish, seeing the free trading of gold as they do: as the crucial mechanism of liberty, limited government, fair dealing among the nations, and the continued ascent of man.
Even so, sentiment in the monetary metals sector now couldn’t be lower, and if there was any chance that market sentiment meant more to the gold price than, say, the sentiment of central banks, to set a good example GATA Chairman Bill Murphy and your secretary/treasurer would have happily hanged themselves years ago.
Hulbert’s analysis is headlined “Here’s What is Holding Gold Back” and it’s posted at MarketWatch.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.