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Cashin notes suspicion of gold rigging but defaults to 'conspiracy theory'
11:23a ET Tuesday, July 23, 2013
Dear Friend of GATA and Gold:
Business Insider today quotes from the daily commentary of Art Cashin of UBS, who acknowledges that there is evidence of gold market manipulation.
Cashin writes: "For several months 'physical gold' (bracelets, coins, and small bars) have seen near riotous demand with long lines stretching into the streets. At the same time 'paper gold' (ETFs, futures, and nominal spot) have seen sharply falling prices. That dichotomy has sparked more than a few conspiracy theories.
"The worst (and most strained) claims the world's central banks have put a bear raid on gold. That rumor claims that they are trying to cover the fact that they have sold/lent the gold they were supposedly safeguarding for their citizens. A plunging gold price would reduce the urge to look behind the curtain (or into the vault) and discover this misfeasance. A more pervasive form of the rumor/hypothesis substitutes the global banks for the central banks but with the same, theoretical abuse of custody."
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While gold investors might be glad of the growing impression that something is wrong in the gold market, Cashin's commentary is tedious for explaining it through "conspiracy theory." For GATA has provided plenty of documentation over the years to show that gold price suppression long has been simply Western central bank policy, discernable by anyone who wants to look at the documentation or put the right pointed questions to central banks.
If Cashin is ever interested in graduating from "conspiracy theory" to documentation, he might start with this secret report of the International Monetary Fund from March 1999, revealing that Western central banks conceal their gold swaps and leases precisely to facilitate their surreptitious intervention in the gold and currency markets:
http://www.gata.org/node/12016
Then he might review GATA's general documentation file here:
http://www.gata.org/taxonomy/term/21
And then, in his journalistic capacity as a financial letter writer and analyst on CNBC, he might try putting a few questions directly to central banks, like these:
http://www.gata.org/node/11661
Of course such elementary research and journalism are seldom attempted by the mainstream financial news media, least of all about gold. But if Cashin can commit them and then report back to his readers and viewers about gold without resorting to the lazy dodge of "conspiracy theory," he'll have earned his tin-foil hat -- that is, if GATA can get more aluminum out of the Goldman Sachs warehouse.
Business Insider's account of Cashin's commentary is here:
http://www.businessinsider.com/art-cashin-gold-backwardation-conspiracy-...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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