Last night in the aftermath of the terrorist attacks in Paris news
organizations were speculating that the price of gold would rise today
because of international tensions and turmoil. Longtime followers of GATA
might have just laughed, knowing that gold would continue to perform
counterintuitively on account of surreptitious crisis intervention by central
banks.
Of course GATA's intelligence is not so good that we know exactly how central
banks were trading gold and other markets today. But we do know from their
own admissions that they are secretly trading gold "nearly every
day" --
http://www.gata.org/node/13373
http://gata.org/node/14716
-- and secretly trading all major commodity futures contracts as well:
http://www.gata.org/node/14385
http://www.gata.org/node/14411
While this cannot be reported by mainstream financial news organizations,
it long has been understood by anyone who wants to understand it.
Among the first to understand it and publicize it was GATA's late friend
Peter George, the foremost gold advocate of his day in South Africa.
Preparing for his presentation at GATA's Gold Rush 21 conference in Dawson
City, Yukon Territory, Canada, in August 2005, George gave an interview to
GATA videographer Trevor Johnston, remarking:
"In the last 10 years the central banks have effectively shown that
when there's a real crisis, gold actually goes down, and it's so blatant,
it's a joke."
You can watch that excerpt of George's interview here:
http://www.gata.org/node/20
George's insight, especially relevant as markets resume amid another
crisis of terrorism, is a reminder that no analysis of the gold market is worth
anything if it fails to address these questions:
-- Are central banks in the gold market surreptitiously or not?
-- If central banks are in the gold market surreptitiously, is it
just for fun -- for example, to see which central bank's trading desk can
make the most money by cheating the most investors -- or is it for policy
purposes?
-- If central banks are in the gold market for policy purposes, are
these the traditional purposes of defeating a potentially competitive world
reserve currency, or have these purposes expanded?
-- If central banks, creators of infinite money, are
surreptitiously trading a market, how can it be considered a market at all,
and how can any country or the world ever enjoy a market economy again?
These are the questions mainstream financial news organizations, market
analysts, and most purported analysts of the gold "market" are
forbidden to pursue.
Documentation answering those questions can be found here:
http://www.gata.org/node/14839
