GATA Points to ‘Proof’ of Gold Price Suppression Intent — Lawrie Williams

It has long been claimed that the gold price, along with virtually every other traded market, is manipulated by financial interests which can lay hands on sufficient funds, or credit, to be able to do so. That is an unfortunate aspect of the capitalist system and tends to benefit the big money, mostly at the expense of the small investor.
But since its formation in 1998 the Gold Anti-Trust Action Committee (GATA) has gone a stage further with its claims that not only is the gold price manipulated (which suggests it can be pushed up as well and down), but that there is collusion by big money (mainly the bullion banks), central banks and governments to go a stage further and keep the gold price SUPPRESSED, given that a rising gold price is seen by the financial markets as a sign of weakness in the almighty dollar and in the global economy. That runs counter to the impression that governments wish to portray.
From time to time GATA has also managed to acquire documents which support its point of view in terms of memos from some key figures, particularly from the U.S. Treasury and Federal Reserve, which would appear to support the idea of a gold price suppression policy. And now it has just been involved in publishing a document, dating back to the early 1970s.
The cable, according to GATA, suggested that the U.S. gold futures market was created in December 1974 as a result of collusion between the US government and gold dealers in London to facilitate volatility in gold prices and thereby discourage gold ownership by U.S. citizens. That is perhaps an arguable contention as it perhaps rather points out the consequences of a change in U.S. policy in allowing citizens to own gold.
The above-mentioned cable from the U.S. Embassy in the U.K. to the State Department perhaps does not quite provide ‘proof’ of U.S. Government involvement in actual gold price suppression, but is yet another piece of circumstantial evidence that it was certainly aware of the likely effects of the futures market on the gold price pattern and may well have colluded in this as being in its best interests.

This post was published at LAWRIEONGOLD