Lots of talk about gold but only a hint about manipulation
Lots of talk about gold but only a hint about manipulation by Chris Powell – GATA
Dear Friend of GATA and Gold:
A tiny bit of progress in the struggle to expose gold market manipulation by central banks can be found today at Forbes, where asset manager and economist Nathan Lewis contemplates mechanisms for restoring a gold standard.
In an essay headlined “The Mythical Problem of Finding ‘The Right Gold Price'” —
— Lewis writes that in recent years “central banks have engaged in other kinds of macroeconomic manipulation (negative interest rates!) to a degree never before seen. Probably they have done some heavy-handed bullying of the gold market itself.”
But there’s nothing to be cheery about over at Barron’s, which, in a report headlined “Is It Time to Hold Gold?” —
— asks James Grant of Grant’s Interest Rate Observer to outline the reasons for gold as an investment and fund manager Daniel Wiener to outline the reasons against it.
Grant notes that as money without counterparty risk, gold may compare favorably with government currencies that pay little interest. But Grant offers no argument against Wiener’s observation that the gold price in recent years has not been keeping up with inflation.
Of course a response to that criticism is always available from GATA’s research —
— which details the constant and usually surreptitious intervention by central banks against gold, particularly through the creation of a vast imaginary supply of the monetary metal in the futures markets.
But this weekend it seems that no one will get closer to that point than Lewis’ timid hint at Forbes.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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