"In view of the on-going manipulation in the gold and silver
paper markets, I have decided to do a multi-interview with prominent voices
in the precious metal markets, and ask them exactly the same questions about
gold and silver manipulation : Chris Powell (GATA), Jim
Willie (Goldenjackass.com) and James
Rickards.
Investors (in the know about the manipulation) have a few essential
questions, so I tried to focus on some that go straight to the point.
I have already explained, in my latest Market Report, that there is a disconnection going
on between the paper and the physical markets but, this time, with these
interviews, I wanted to share the views of key analysts who do recognize that
gold and silver paper prices have been manipulated for years.
Here is the first interview with Chris Powell, of the Gold Anti-Trust
Action Committee (GATA)."
Fabrice Drouin Ristori
Fabrice Drouin Ristori: Mr Powell, thanks for
accepting this new interview.
How long the manipulation of the precious metal markets can last ?
Chris Powell: It can last as long as gold
investors buy "paper" gold rather than real metal. The primary
article of faith about gold is that it can't be printed, but it CAN, insofar
as "paper" gold can be printed to infinity. Gold investors who buy
"paper" gold with the hope of price appreciation would do
better to flush their money down the toilet. At least that way they'll
avoid commissions.
FDR: What will put an end to it ? Physical demand ?
Geopolitical event (BRICS) ?
CP: Probably only the discrediting of "paper" gold, or a futures
market default.
FDR: What will be the signs proving that the manipulation is
ending ?
CP: I doubt that we'll get any signs, though maybe the decline in price of
"paper" gold relative to the price of real metal is a sign of
trouble for the manipulation. More likely the gold price suddenly will be
reset to a much higher level that is more sustainable for manipulation by
central banks with less drain on their gold reserves, at which point
manipulation will resume at the higher level. I doubt that the manipulation
will ever end, since, to preserve their power, governments probably always
will try to rig the currency markets, and they'll probably get away with it until
investors around the world are far more informed than they are now.
«I doubt that the manipulation will ever end, since, to preserve their
power, governments probably always will try to rig the currency markets, and
they'll probably get away with it until investors around the world are far
more informed than they are now.»
FDR: Do you anticipate an overnight ending of the manipulation or
a progressive process ?
CP: I think an overnight revaluation is more likely now. Of course
currency revaluations are always done suddenly, aiming for surprise. No
central banks are going to call us a few days in advance so we can arrange
our portfolios for the greatest benefit. Only the investment banks that
function as agents for central banks will get such calls.
FDR: Is the gold/silver paper spot price still relevant to value
physical gold and silver ?
CP: It is if people really can find metal for purchase at the paper spot
price. But the paper spot price may be losing some relevance as more
shortages have been reported and there is rationing of gold and silver coins
from government mints. Shortages and rationing are forms of higher pricing
that don't get included in nominal prices. Nominal prices are little use if
the product isn't available. But indeed, most gold-related assets are still
taking their cues from the paper spot price and futures prices.
FDR: What direct consequences would a free gold/silver market have
on people worldwide -- not investors, people in general ?
CP: Free markets in the monetary metals would liberate markets and peoples
generally, and reduce the power of governments and central banks, especially
their power to control in secret the prices of all capital, labor, goods, and
services in the world. Such liberation is really the objective of those who
would expose the Western central bank gold price suppression scheme. We don't
really care what people use as money. We just want them to have options of
valuation that are beyond the control of government. Here's how von Mises put
it: "It is impossible to grasp the meaning of the idea of sound
money if one does not realize that it was devised as an instrument for the
protection of civil liberties against despotic inroads on the part of
governments. Ideologically it belongs in the same class with political
constitutions and bills of rights."
FDR: I would like to thanks again Chris Powell for taking the time
for this interview.
Fabrice Drouin Ristori - Founder/CEO Goldbroker.com (FDR
Capital)
ceo@goldbroker.com
Twitter : @FabriceDrouin
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