GATA tells the past well enough, but we're not in charge of the future

10:14p ET Monday, April 16, 2012

Dear Friend of GATA and Gold (and Silver):

Our friend T.R. writes: "It's increasingly difficult to grit my teeth and hang onto my positions in gold and silver, in the gold and silver exchange-traded funds GLD and SLV, and even actual bullion (like American eagle coins). I fully agree with GATA's views on bankster manipulation of these markets, but the breakout forecast for the metals has been thwarted for decades, with no lasting loss of bankster control in more than 30 years. Can you give any encouragement beyond the predictions by various analysts that reality will prevail in these markets any day now? Thanks for your diligence and truth telling."

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GATA can't offer as much encouragement as we'd like, since we're not an investment adviser and since the price suppression can continue indefinitely, even forever, as long as enough institutions and individuals who think they're buying gold and silver purchase only paper claims and never take delivery from the purported sellers and move the metal outside the banking system. Such investment behavior facilitates the infinite increase of imaginary gold, the mechanism of price suppression.

The evidence is that Asia is changing things, but does GATA know how much more gold the Western central banks are prepared to dishoard to help keep the price down, or how many payoffs the U.S. government is ready to work in the futures and derivatives markets through JPMorganChase to discourage investors from taking delivery? They don't tell us their plans. We just pick up on their traces.

On the other hand, gold has been up virtually every year since GATA was founded in 1999, from $260 to more than $1,600 today. If you can find a better-performing market sector, please let us know about it. If you've gotten into the monetary metals only lately and have been disappointed, all we can do is promise to try to keep working against the market rigging.

But anyone who wants a little encouragement tonight can read the Got Gold Report's Gene Arensberg, who writes that if commodities market analyst Dennis Gartman is denouncing investment in the junior gold and silver miners as "a mug's game" when they've already fallen 50 percent, capitulation may have happened already:

http://www.gotgoldreport.com/2012/04/gartman-abandon-junior-miners-mugs-...

And interviewed today by King World News, Sprott Asset Management's John Embry sees China's growing internationalization of its currency as bullish for gold because it likely will involve gold backing for the yuan:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/16_Em...

But the Western central banks and particularly the U.S. Treasury Department and Federal Reserve are not going to give up easily and let their immense power -- tyrannical power, really -- be democratized by free markets. This struggle isn't for the faint of heart, and it has so many political ramifications that there is no telling how it will turn out. The gold price suppression scheme is being exposed -- indeed, has been exposed to an audience that well may be decisive, and like all lies it will fail eventually. But this still doesn't mean that anyone in any particular country will be allowed to profit from being right about it.

What we know has been placed in our "Documentation" file here:

http://www.gata.org/taxonomy/term/21

It tells only the past, not the future. That's the best we can do, and for the time being it seems that we're the only ones doing it. Make whatever you can of it.

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

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