Another ignorant ‘expert’ dismisses complaints of gold market rigging

Another ignorant ‘expert’ dismisses complaints of gold market rigging by Chris Powell for GATA

Dear Friend of GATA and Gold:

In an essay posted today at FX Empire, “Gold Market Manipulation and the Federal Reserve,” financial planner Kelsey Williams both admits and dismisses complaints of manipulation of the gold market.

Williams doesn’t identify the people he purports to be rebutting, but his characterization of them doesn’t fit GATA, even though he seems to think it does.

“Some gold bulls,” Williams writes, “have bought in heavily to the argument that gold price suppression has been an ongoing activity for years, even decades. Supposedly, trading in the gold market is manipulated in ways that depress the market price for gold.

“Assertions are made that the manipulation takes place in a shroud of secrecy; and the unexpected lower prices for gold, or prices that don’t meet wildly bullish expectations, are cited as evidence of conspiratorial activity. The claim is made that the price of gold would be much higher if this manipulative trading activity were exposed, acknowledged, and prohibited. But … all markets are manipulated.

The sneer about complaints of “conspiratorial activity” is easily refuted. After all, has Williams ever tried attending a meeting of the Federal Reserve’s Open Market Committee, the Treasury Department’s Exchange Stabilization Fund, the G-10 Gold and Foreign Exchange Committee, or the board of the Bank for International Settlements?

Of course Williams wouldn’t be allowed in.

If Williams had been around in the 1960s, he also would have been prohibited from attending the deliberations of the London Gold Pool —

— whose demise 52 years ago refutes Williams’ skepticism that gold market manipulation has been happening for decades.

GATA has documented how all those entities are or were heavily involved in the gold market —

— and all of them function or functioned in secret. That’s the definition of “conspiracy.”

By “all markets are manipulated,” Williams suggests that manipulation of the gold market is less important than the manipulation of other markets. But he contradicts his suggestion at the conclusion of his essay, when he writes: “Gold is the original measure of value for all other goods and services.”

Indeed, the manipulation of the gold market is the prerequisite for the manipulation of all other markets.

“Gold and silver bulls are one-sided in their arguments against manipulation and its presumed effect on prices,” Williams writes. “When prices don’t meet expectations on the high side, or an ‘unexpected’ drop in price occurs, finger-pointing at shadow figures is heightened.”

But these are not “shadow figures” at all. They are government agencies very well specified by GATA, like the BIS, whose surreptitious intervention in the gold market on behalf of its central bank members reached a three-year high in May:

Exactly what is the BIS doing in gold and for whom? GATA asked the bank a few years ago and promptly received a “no comment”:

Like most others who purport to analyze the gold market, Williams should try putting a few critical questions to the BIS and major central banks and then ponder the meaning of their refusals to answer.

Williams continues: “Long-side investors in all assets, including precious metals, ‘benefited’ from the manipulative efforts of the Federal Reserve 12 years ago and again just recently. The recent recovery in prices for stocks, bonds, oil, gold, and silver has been almost unbelievable. It is literally jaw-dropping, but nobody is complaining. Nobody cries foul when markets are manipulated for the purpose of driving prices higher.”


GATA has been complaining about gold market manipulation since 1999, through rising prices as well as falling prices, because our bigger objectives are free and transparent markets and limited and accountable government, objectives that cannot be achieved without a free market in the monetary metals.

GATA also often has called attention to the ability of central banks to use market intervention to push the gold price up so as to devalue their currencies and the debts owed in them — at central banking’s convenience, of course:

Discussion of gold market manipulation is no good without specifics. Williams pontificates while addressing none:…

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

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Chris Powell

The Gold Anti-Trust Action Committee was organized in the fall of 1998 to expose, oppose, and litigate against collusion to control the price and supply of gold and related financial instruments. The committee arose from essays by Bill Murphy, a financial commentator on the Internet (, and by Chris Powell, a newspaper editor in Connecticut. Murphy's essays reported evidence of collusion among financial institutions to suppress the price of gold. Powell, whose newspaper had been involved in antitrust litigation, replied with an essay proposing that gold mining and investor interests should act on Murphy's essays by bringing antitrust lawsuits against financial institutions involved in the collusion against gold. The response to these essays was so favorable that the committee was formed and formally incorporated in Delaware in January 1999. Murphy became chairman and Powell secretary and treasurer.