Auerback, Naylor-Leyland cite gold suppression; Turk expects silver blastoff

11:25p ET Monday, November 28, 2011

Dear Friend of GATA and Gold:

Interviewed this week by Kevin Michael Grace at Resource Clips, Pinetree Capital's Marshall Auerback says central banks are manipulating the currency and bond markets and possibly the equity markets, so they well may be manipulating the gold market too. Auerback says that without a lot of gold lending by central banks, the gold price would be much higher, and he suspects that central banks eventually will reclassify the gold loans as sales and write the gold off as lost.

GATA has maintained that only this sort of conversion of irretrievable gold loans to sales can explain gold's steady rise in price over the last decade despite constant announcements of sales by central banks. That is, no gold was really being sold at all and no new gold was hitting the market; rather, gold borrowers were being let off easy, allowed cash settlement on terms that essentially expropriated the publics to which the gold really belonged, because demanding return of the gold would have exploded the price and devastated the currencies of the central banks doing the lending.

Auerback also wonders whether U.S. market regulators allowed the MF Global brokerage to fail as a way of punishing investors in commodities.

His interview can be found at Resource Clips here:

http://resourceclips.com/2011/11/28/gold-at-3000/

Meanwhile, in a video interview today with Bloomberg News that has been posted at the Washington Post's Internet site, Cheviot Asset Management Investment Director Ned Naylor-Leyland, who spoke at GATA's Gold Rush 2011 conference in London in August, was allowed to mention gold price suppression, if in a very polite way. Bloomberg's reporters have yet to discover this story, but maybe it will be a little harder for them to ignore it now that it has slipped out onto their own video feed:

http://www.washingtonpost.com/business/naylor-leyland-says-gold-to-hit-2...

And interviewed today by King World News, GoldMoney founder and GATA consultant James Turk, who also spoke at Gold Rush 2011, said silver's price chart is foretelling a relatively quick doubling, even as gold also looks ready to break out again:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/28_J...

In any case, fiat justitia et ruant coeli -- and may they fall most heavily on Wall Street, the corner of 20th Street and Constitution Avenue in Washington, and Threadneedle Street in London.

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