Press Releases, Essays, GATA in the Press
By Josephine Mason
September 12, 2004
Bill Murphy is fired up. He's been fired up for a good five years now -- ever since he claims to have unearthed evidence that the price of gold was being suppressed by a gold "cartel," operated by global financial institutions, including the U.S. Federal Reserve and the International Monetary Fund.
The London Bullion Market Association
Bullion Market Forum
Baltschug Kempinsky Hotel, Moscow
June 3-4, 2004
Perspectives on Gold: Central Bank Viewpoint
By Oleg V. Mozhaiskov, Deputy Chairman
Bank of Russia
By Chris Powell, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
May 30, 2004
How does the Gold Anti-Trust Action Committee know that central banks are working with bullion banks and other financial houses to suppress the price of gold?
For best legibilty click the link below for the article in Adobe Acrobat Reader. This is a very large file (20 MB):
The Return of the Gold Bugs.pdf
The links below will open .jpg images taken as scans of the article in Smart Money magazine, June 2004.
By James Turk
Copyright 2004 by The Freemarket Gold & Money Report
All rights reserved
Letter No. 341
March 15, 2004
On March 8th the European Central Bank and 14 of Europe’s national central banks made the following announcement:
“In the interest of clarifying their intentions with respect to their gold holdings, the undersigned institutions make the following statement:
By Andrew Hepburn
January 12, 2004
The Gold Anti-Trust Action Committee (GATA) believes that central banks, acting through certain investment banks, have surreptitiously manipulated the price of gold. Such activity appears to have started in the mid-1990s and continues to this day. Prominent entities involved include J.P. Morgan Chase, Goldman Sachs, Deutsche Bank, the Federal Reserve, the Bank of England, and the Bank for International Settlements. GATA specifically alleges that the U.S. Treasury's Exchange Stabilization Fund has been used, contrary to official denials, for gold market interventions. Furthermore, GATA believes that the official sector intervened in the late 1990s to prevent an impending gold derivative crisis, the result of excessive short positions accumulated over many years.
Gold Derivatives: Hitting the Iceberg
What is the size of the total short physical gold position, or put another way, how much gold from their vaults have the central banks collectively deposited, leased or swapped into the market through the bullion banks? Taking advantage of guidelines promulgated by the International Monetary Fund, most central banks report their gold reserves without providing a breakdown between bullion held in their vaults and gold receivables owed to them on account of deposits, loans and swaps, as would be required under more normal accounting practice. Thus the size of the total short physical position continues to stir controversy, with Gold Fields Minerals Services sticking to its estimate of 4000 to 5000 tonnes notwithstanding the mountain of research by the Gold Anti-Trust Action Committee and its associates suggesting an amount two to three times as large. See, e.g., T. Wood, "That gold short position," Mineweb (December 5, 2003).
In order to explain the Why's and How's of the Gold Price Manipulation scheme (and why it is illegal and unfair), 6 aspects need to be discussed - namely motive, means, proof, opportunity, track record and impact.
- US Government: To artificially keep interest rates down by deceiving the bond markets about inflation, and thus the gold price. In short, lower gold price = lower inflation = higher stock market = higher reelection chances.
- US Government: To artificially strengthen the US dollar relative to other currencies. Clinton's "Strong Dollar Policy" was suppression of gold price. In short, lower gold price = higher US dollar = higher stock market.
- Some Bullion Banks: To provide cheap source of capital to earn huge income, providing gold price is kept low.
Background: The gold price suppression scheme was actually put down on paper, in public, by Harvard Professor Lawrence Summers, before becoming Treasury Secretary under Clinton. He wrote of the inverse relationship between the gold price and interest rates, and concluded that government could keep interest rates low by suppressing the gold price. Refer: www.gata.org/gibson.pdf
In previous work I drew attention to the link between the rapid growth of interest rate derivatives [IRDs] at Chase and Morgan subsequent to an unprecedented gold market preemptive selling episode in 1996. This report will further explore the likely interventional reasons behind this extreme interest rate derivatives growth. In addition, an important 1998 Federal Reserve consultant's publications that describe exact methodology needed to enforce the government's long-term interest rate policies are reviewed. Also the report shows preliminary evidence that since Summer 2003 the long interest rates appear to be under the controlling influence of those Federal Reserve policies. Finally, issues threatening the gold and interest rate interventional operations of the Federal Reserve are briefly discussed.
Investment Indicators from Peter George
Wednesday, December 3rd, 2003