Gold Price Suppression is Good For You

Gold is Manipulated (But That’s Okay)

Another great piece from Chris Martenson, with an excellent overview of the subject, with historical context and some interesting chart work. As a two-fer, see the exerpt from Jim Willie’s piece posted in the comments section of Martenson’s article, full text is here  http://www.chrismartenson.com/blog/gold-manipulated-thats-okay/72892

Wednesday, March 28, 2012, 11:00 pm, by chris martenson

“The price of gold is being actively managed by central planners and their proxies. The main culprit here appears to be the US authorities, as the manipulation is most apparent in the US open gold market. For the most part, this ‘management’ has resulted in letting the price of gold rise, but not too much, or too quickly.

“The price of gold has always been an object of interest for governments and central bankers. The reason is simple enough to understand: Gold is an objective measure of the degree to which fiat money is being managed well or managed poorly.

“As such, whenever paper money is being governed poorly, the price of gold becomes an important barometer. And this is why the actual price of gold is a strong candidate to be ‘managed.’ Or ‘influenced’. Or ‘manipulated’. Whichever word you prefer, they all convey the same intent.

“Some who are reading this are likely having an eye-rolling moment because they hold a belief that there is no conspiracy to manage the price of gold.

“This is an interesting belief to hold because it runs heavily against the odds. It’s similar to holding the belief that the house in Vegas does not have a statistical advantage….Instead of asking why do you think the price of gold is controlled? I ask, why do you think the price of gold is NOT controlled?

“Among those benefiting from buying cheaper-than-otherwise gold would be anyone and everyone who has bought gold lately. Private and official purchasers alike have been getting a very good price, indeed. Where you and I can be thankful for less expensive gold as we add to our holdings, so, too, can India and China be pleased at the national level.

“All told, we are seeing a very interesting game play out around gold, and my suspicion is that it is the possibility of eventual re-monetization that motivates some of the moves. If this comes to pass, the gold price suppression will prove to be a most unfortunate mistake, providing short-term political and market cover for excessive money printing while sacrificing long-term advantage to those taking the other side of the suppression trade.”

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