GATA: "As Gold Price Suppression Grows More Brazen, Maybe Asia Will Defeat It"

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Wed, 09/21/2011 - 10:58 | 1692389 GetZeeGold
GetZeeGold's picture

 

No more cheap gold? It was the only government plan working for me.

 

 

Wed, 09/21/2011 - 11:04 | 1692411 gmrpeabody
gmrpeabody's picture

Gold Bi...,

oh, never mind.

Wed, 09/21/2011 - 11:10 | 1692428 spiral_eyes
spiral_eyes's picture

 

To be honest, unless you're a paper speculator gold and silver suppression have been a good deal for investors — they have allowed us to pick up physical PMs at way below fair value.

And it's not like — in the long run —  Blythe & co have been very successful. Gold is up something like 500% on 2001, silver closer to 800%. That's because in spite of market manipulation, prices are ultimately determined by global fundamentals. And — as we all know — the fundamentals from PMs are way, way up from here.

http://azizonomics.com/2011/09/18/about-silver-manipulation/

 

 

Wed, 09/21/2011 - 11:55 | 1692661 strannick
strannick's picture

Go Gata. Only Ron Paul can compete with GATA for resilient 'truthiness' in exposing government currency manipulations. Shame on the CFTC. Shame on Jill Sommers, Scott O Malia, Micheal Dunn Gary Gensler and yes, even Bart Chilton

Wed, 09/21/2011 - 12:01 | 1692689 ratso
ratso's picture

This article is pure crap.  Just another set of gold conspiracy theories that are patently false.  I'll just make one point to make the indication of how distorted this article is.

Central banks sold gold not to control the price or influence interest rates but because they had conlcuded that the importance of gold was expiring as a store of value and because the money received represented a significant gain in currency that could be more usefully applied.

Wed, 09/21/2011 - 12:48 | 1692958 Al Huxley
Al Huxley's picture

Sure, go with the MSM line, it's not like they've ever lied before.

Wed, 09/21/2011 - 13:10 | 1693094 Abitdodgie
Abitdodgie's picture

When something has been source of wealth for 6000 years and a Banker says it is a barbaric relic, do you belive them (well ratso does )but we in the real world know better , Gold and silver has been the best "dumb" investment for about ten years, you just stack it and forget it .

Wed, 09/21/2011 - 13:34 | 1693267 Diogenes
Diogenes's picture

"Central banks sold gold not to control the price or influence interest rates but because they had conlcuded that the importance of gold was expiring as a store of value and because the money received represented a significant gain in currency that could be more usefully applied."

So they sold all their gold at the bottom, $320 and ounce. How is that trade working out? Are you suggesting they are not crooked, just stupid?

Wed, 09/21/2011 - 19:42 | 1695052 Bring the Gold
Bring the Gold's picture

That's what they always try and sell you. Donchya know they are all keystone cops. The modified limited hangout is always "we're too bumbling to pull something like that off...now pay no attention to our power and wealth".

http://en.wikipedia.org/wiki/Limited_hangout

Yep there are never elite conspiracies, only fortunate coincidences and totally forgivable mistakes. Of course no one will ever PAY for those mistakes, and they certainly won't cede power, but lets not get all crazy and demand accountability or anything. I mean accountability that's something for poor people, just like conspiracies to rob 7/11's.

Wed, 09/21/2011 - 13:59 | 1693396 trembo slice
trembo slice's picture

@Ratso...

you're wrong on all counts.  central bankers "concluded that the importance of gold was expiring as a store of value" if they came to this conclusion... they are morons.

Wed, 09/21/2011 - 15:37 | 1693883 crazyjsmith
crazyjsmith's picture

I wouldn't say they're morons, they just know they have no other choice.  Actually, I would say they are morons, but whatever....

GOLD IS A REPORT CARD OF ALL CENTRAL BANKS! 

They know this, and my last check of their report card shows a solid F.

If you were a student and could go in and manipulate your grades, you sure as hell would.  In the end, the student (Central Bank) is still stupid, and the parents (Public) are left with manipulated and deceptive data.   

Wed, 09/21/2011 - 14:07 | 1693398 Harlequin001
Harlequin001's picture

Ratso, 'This article is pure crap.  Just another set of gold conspiracy theories that are patently false.  I'll just make one point to make the indication of how distorted this article is.

Central banks sold gold not to control the price or influence interest rates but because they had conlcuded that the importance of gold was expiring as a store of value and because the money received represented a significant gain in currency that could be more usefully applied.'  - and in one sweeping statement the world was awakened to the fact that it had created a completely new class of idiot.

'the money received represented a significant gain in currency'- utter gibberish, and that's your point, unfortunately...

Wed, 09/21/2011 - 14:15 | 1693479 Sean7k
Sean7k's picture

Let me see, a well documented argument from GATA or the opinion of "ratso"- tough decision!

Wed, 09/21/2011 - 12:55 | 1692998 Conax
Conax's picture

Only metal investors try this argument. I mean, who ever heard of an investor who wishes his holdings to drop in value? In any other area, this would be nutz.

My house has depreciated to half its value, I hope it continues so I can buy another house... ?

Silver bugs from days gone by bought and held, and held, for decades waiting for their day in the sun. They died, still regarded as dumbasses by their friends and associates because the ship never came in. 

I would like to see the metals trade at their real value, in high esteem as the only real money there is.

The bankers have done us no favors distorting and manipulating the markets. Look where we are now.

 

Wed, 09/21/2011 - 19:38 | 1695040 BigJim
BigJim's picture

True. Everyone applauding price suppression applauds it in the belief it'll end, but only after they've backed up the truck.

Wed, 09/21/2011 - 13:18 | 1693152 goldfreak
goldfreak's picture

the suppression has worked very well for me. I would not have been able to accumulate all my PM's without it

Wed, 09/21/2011 - 13:27 | 1693214 Conax
Conax's picture

If the suppression continues ad infinitum, what's the point?

I expected a passle of red because most of the readers of ZH are younger dudes.

I understand where you newer buyers are coming from. I still want to see hundred dollar Ag before I croak.

yeahhh.

Wed, 09/21/2011 - 14:20 | 1693500 Sean7k
Sean7k's picture

The point is that silver and gold have been the best investments you could own since 2001. I guess you missed that, must be the alzheimers. 

Wed, 09/21/2011 - 19:44 | 1695056 Bring the Gold
Bring the Gold's picture

Probably still (justifiably) bitter about 1979-1980.

Wed, 09/21/2011 - 11:31 | 1692555 theXman
theXman's picture

For Chindia and any other country who would like to accumulate as much gold as possible, the lower the price the better. They would welcome the artificially low price. Why would they help to defeat the price suppression? I just don't under GATA's logic. 

Personally, I would like to see more price suppression so that I can buy at lower price as well.

Wed, 09/21/2011 - 19:40 | 1695044 BigJim
BigJim's picture

Presumably, though, you wouldn't like the price suppression to go on forever, would you?

Wed, 09/21/2011 - 10:59 | 1692397 runlevel
runlevel's picture

Say Silver Again!

Wed, 09/21/2011 - 11:22 | 1692447 X.inf.capt
X.inf.capt's picture

thats where im at.

TYLER, these articles are coming out pretty fast today

any special reason?

Wed, 09/21/2011 - 11:24 | 1692512 Oh regional Indian
Oh regional Indian's picture

Agreed. Asia is busy saving Silver and I can say that with confidence from the view on the ground.

Gold Will F(ofa)old!

And that is no conspiracy theory. i have a book at hand, that I received 6-8 weeks ago that tells me I was right one year ago.

ORI

 

Wed, 09/21/2011 - 12:07 | 1692710 Cognitive Dissonance
Cognitive Dissonance's picture

Careful with that confirmation bias my friend.

It's more intoxicating than the best bottle of wine or aged Irish Whiskey. :>)  :>)

BTW I like my confirmation bias straight up and about three fingers high in the glass.

Wed, 09/21/2011 - 12:12 | 1692739 Oh regional Indian
Oh regional Indian's picture

CD, I kid you not, I have the book of books at hand. Without an iota of doubt.

Gold is the greatest head-fake in the history of money. It's blinding like the Sun.

Let's watch together, eh, in the timelss tone of Another. ;-)

Such days though, man, such days.

In the grand scheme, as you well know, it's all good. Or not!

;-)

ORI

Wed, 09/21/2011 - 12:24 | 1692802 Cognitive Dissonance
Cognitive Dissonance's picture

Careful my friend. That's just crazy talk......talk that ultimately I can't disagree with :)

If we are to accept that the money meme is a Trojan Horse theme used to seduce and control, then Gold is just the same horse of a different color.

http://www.zerohedge.com/article/perception-inception-and-trojan-horse-money-meme

Wed, 09/21/2011 - 12:31 | 1692842 Oh regional Indian
Oh regional Indian's picture

Maybe time to be care-free again CD? Long series, will delve in later... the premise is of course highly resonant.

ORI

Wed, 09/21/2011 - 19:51 | 1695073 Restcase
Restcase's picture

Tell us the name of the book. Some of us like silver as much as you...

Wed, 09/21/2011 - 12:47 | 1692956 kkam
kkam's picture

ORI, you are wrong. I am Indian too, an investor and fx/pm trader living now in India again having lived in many parts of the world. Silver is strong here, but gold is much, much stronger. Don't know what book you are referring to, but seeing the reality on the ground here and reading your comments I'd say you're smoking something funny.

Wed, 09/21/2011 - 12:58 | 1693016 Oh regional Indian
Oh regional Indian's picture

Hey Kkam, customer volume in the two sections (always distinct) of a major Jeweller (actually three) would be a tell? BEsides close relationship with said dealer and frequent questioning of the same? Watching the 30 Kg Rounds increasing every other week, plus the increasing demand for .999?

The book can be had by anyone who asks me (me e-mail is on my site).....

But on the ground in a major South Indian Metro, Silver is gaining momentum, no doubt in this long term PM investor's mind.

Nice to meet you by the way. 

ORI

PS: Have you noticed how Indians are always rude to other indians in foreign company, even virtual company? Since you are world travelled, you must have noticed this too. That crabs in a pot story really sounds true. 

Wed, 09/21/2011 - 13:08 | 1693075 kkam
kkam's picture

There was nothing rude in my reply. I believe you're wrong, that's what I said. I checked out your blog article and if that's the sort of stuff you're into, wer'e on different planets. Good luck.

Wed, 09/21/2011 - 13:12 | 1693103 kkam
kkam's picture

Silver is gaining momentum - there's a simple reason for tha. Silver is cheap compared to gold, so more investors are turning to silver. But to say gold is some sort of 5000 year con job is nonsense not worth discussing.

Wed, 09/21/2011 - 11:03 | 1692401 Cognitive Dissonance
Cognitive Dissonance's picture

The Asians will play the Ponzi/Gold game until they feel it is no longer in their best interest to play. Then they will cross swords and openly declare war. The bottom line is that we should all understand that PM price suppression is to our benefit because it essentially puts "real" Gold on sale every day.

To prove my point, what do you think the "real" price of Gold, meaning physical, would be today without suppression?

Wed, 09/21/2011 - 11:25 | 1692427 Motley Fool
Motley Fool's picture

About $60,000 per ounce. :P

Wed, 09/21/2011 - 11:10 | 1692438 mayhem_korner
mayhem_korner's picture

$10,000 per oz.

Wed, 09/21/2011 - 11:22 | 1692505 FranSix
FranSix's picture

If you use CPI to adjust for inflation, gold's 40-year inflation adjusted average was ~$600/oz.  If you use shadowstats.com adjusting for inflation, the 40-year inflation adjusted average is ~$2000/oz.

This is ~100X the price fix prior to the U.S. dollar devaluation during the depression.

Wed, 09/21/2011 - 11:18 | 1692485 mayhem_korner
mayhem_korner's picture

 

Spot on as usual, CD.  Currency war begets trade war begets military war...

With,

Without

And who'll deny it's what the fighting's all about...

Wed, 09/21/2011 - 11:48 | 1692629 OutLookingIn
OutLookingIn's picture

Yes.

When trade and goods are not allowed to cross borders, armies often do.

Wed, 09/21/2011 - 12:23 | 1692801 Hugh_Jorgan
Hugh_Jorgan's picture

Yep. One entity decides for whatever reason to break the agreed upon rules and begins to take from the system by manipulation and trickery. As the do so, they are always stealing from another player. The loser will eventually get sick enough of this arrangement  that they decide to use other "leverage" to try to stop the manipulation. There is then an indignant retaliation by the rule-breakers, and back and forth it goes. Mix in the inevitability of mankind's ignorance, hubris and animal instincts; BOOM! We have WWIII (at least the shooting phase of it).

Wed, 09/21/2011 - 11:36 | 1692577 viv_savage
viv_savage's picture

To answer your query I'd say around 55 - 75K/toz.

However, I will only begin to exchange ounces/grams/grains for fiat once Freegold has been established and is the new paradigm.

Wed, 09/21/2011 - 11:52 | 1692643 RSloane
RSloane's picture

So far, it has been working in our favor.

Wed, 09/21/2011 - 19:44 | 1695054 BigJim
BigJim's picture

Not if you'd bought it in the 80's and died before 2001.

I'm long gold, BTW, and wish for the price suppression to end... but only now that I've got some ;-)

Wed, 09/21/2011 - 12:05 | 1692704 Smiddywesson
Smiddywesson's picture

$10,000 if they just let go of the price.  $60,000 if they ramp the price of gold to dig themselves out of debt and restore their balance sheets.

Of course, the higher they ramp the price, the less everything else measured in gold is worth.  This constitutes a tax on you to bail them out.  They wouldn't do that, would they?

BuhHaahaahaa

Wed, 09/21/2011 - 12:08 | 1692716 Cognitive Dissonance
Cognitive Dissonance's picture

Either way we ultimately lose. The game is to lose less than if we did nothing.

Wed, 09/21/2011 - 12:13 | 1692743 Zola
Zola's picture

I would venture 10,000 to 15,000 USD...

Wed, 09/21/2011 - 12:28 | 1692825 Cognitive Dissonance
Cognitive Dissonance's picture

Then it sounds like we should go all Cramer like and buy buy buy. :>)

Wed, 09/21/2011 - 11:03 | 1692409 lynnybee
lynnybee's picture

THANK YOU ! for a great posting !  ...... such a simple concept; i've tried to explain it to many of my friends, i tell them "run, don't walk, run to the coin guy down the street & buy even just a few gold & silver eagles or maples ; they do nothing . "    that is the hold that governments & banking have over the sheeple; either they don't understand or they don't believe........ but, they will one day when they are wiped out on their paper money in a bank deposit.

Wed, 09/21/2011 - 11:18 | 1692489 SilverRhino
SilverRhino's picture

either they don't understand or they don't believe..

That's exactly the case.   I'm done educating people.  Picked up 40 silver PROOF dollars at Melt + 10% the other day.   Asked the guy about it and he just wanted to get rid of them.   We both think we sort of 'took' the other.   (I guess that's good business)

Wed, 09/21/2011 - 11:41 | 1692601 I Got Worms
I Got Worms's picture

Sadly, I am done trying to explain gold and silver to folks too. I've got my parents to buy a few oz of gold and couple rolls of silver - though they still think it is some sort of gimmick - they just bought to shut me up, I'm sure. It's exhausting trying to peel eyelids open. I'm at the point of "Come what may." F the sheep. they may be as much of the problem as our evil banker overlords.   /sigh

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