Yes, Michael Kramer, but WHY hasn't gold kept up with inflation?

1:25p HKT Tuesday, April 4, 2017

Dear Friend of GATA and Gold:

Writing this week at Investopedia, fund manager Michael Kramer of Mott Capital Management in Garden City, New York, notes that the gold price in recent decades has not kept up with inflation, a point GATA has made for many years and that GATA Chairman Bill Murphy and GoldMoney founder and GATA consultant James Turk repeated this week.

Unfortunately Kramer uses this observation only to disparage gold as an investment, not as a point of departure for investigation. That is, if inflation manages to keep up with itself, why can't gold keep up with it?

Of course Kramer could place himself with the "don't care" crowd and assert that all he cares about for himself and his investors is profit, no matter how obtained. But what if the gold market is being rigged surreptitiously by governments and central banks to support their currencies and bond prices? And what if this rigging is distorting other markets and, indeed, destroying the world's market economy? Would that still be of no concern to investment professionals?

Is a little truth telling really out of the question for them -- say, acknowledging that gold is a lousy investment because governments and central banks wage desperate war against it and that the way to profit is to invest as coerced by governments and central banks, free markets and human liberty itself be damned?

Or should investors and citizens be given only half the story about gold, lest their illusions be disturbed?

Kramer's commentary is headlined "Not All that Glitters Is Worth Owning, Especially Gold" and it's posted at Investopedia here:

http://www.investopedia.com/news/not-all-glitters-worth-owning-especiall...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org