Rick Ackerman: Why isn't gold higher?
9:50p ET Wednesday, January 30,2013
Dear Friend of GATA and Gold:
Market analyst Rick Ackerman's new essay, "Why Isn't Gold Higher?," is actually another salvo in the sometimes contentious argument between inflationists and deflationists, which isn't GATA's fight. But Ackerman's essay still is delightful for ratifying some of GATA's premises:
1) Gold futures aren't reliable claims on gold.
2) Paper claims to gold have been diverting investment demand away from real metal, just as all commodity futures and derivatives long have been diverting investment demand for inflation hedges away from real things and into paper -- such diversion, suppressing commodity prices and concealing inflation, having become the primary purpose of futures and derivatives, as the British economist Peter Warburton argued in 2001 in his seminal essay, "The Debasement of World Currency: It Is Inflation But Not as We Know It":
3) Western central banks won't be the ones to precipitate a short squeeze in gold, because they don't want their leased and swapped gold back from their bullion bank agents. Instead, controlling the gold price surreptitiously to defend the value of their currencies and government bonds is infinitely more important to them.
Such premises may not quite have reached critical mass in the gold world, but if even the Financial Times is starting to acknowledge and credit GATA for them --
-- things may be changing fast enough that in a few years even the World Gold Council may have to pay as much attention to gold swaps, leases, and other mechanisms of central bank market intervention as to slinky high-fashion models, thereby achieving some relevance to the mining industry.
Ackerman's essay is posted at GoldSeek here:
And at 24hGold here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Fred Goldstein and Tim Murphy open All Pro Gold
All-Pro Gold, run by long-time GATA supporters Fred Goldstein and Tim Murphy, offers its services to GATA supporters and anyone else interested in precious metals. The company brokers a full line of precious metals and numismatic coins. It aims to inform prospective clients about the importance of the monetary metals as part of a diversified financial portfolio and to keep prospective clients current with market trends. All-Pro Gold has competitive pricing and ships promptly to clients so they may have physical possession. Learn more by e-mailing Fred@allprogold.com or Tim@allprogold.com or telephone 1-855-377-4653 or visit www.allprogold.com.
Join GATA here:
California Resource Investment Conference
Saturday-Sunday, February 23-24, 2013
Hyatt Regency Indian Wells Resort and Spa
Palm Desert, California
* * *
Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:
Or by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
Opinion Around the World Is Changing
in Favor of Gold -- Find Out Why
When Deutschebank calls gold "good money" and paper "bad money". ...
When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ...
When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ...
When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ...
When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ...
World opinion is changing in favor of gold.
How can you learn why and what it will mean to you?
Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard."
Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him."
To buy a copy of "The True Gold Standard," please visit: