History in the Making

October 2, 2000

The evidence that there is a conspiracy to hold down the price of gold could not be more clear. It also could not be more clear that this conspiracy has begun to fall apart. Ironically, the effort to suppress the price of gold has intensified, but behind the scenes, the air smells of putrefaction, of gold cabal decay - of coming demise.

The word conspiracy probably conjures more emotion and derision than any other word I can think of. The traditionalists and mainstreamers often associate the word with kooksville. Yet, a conspiracy is only 3 or more people, or entities, getting together and conspiring to attain a desired result. When put that way, there is nothing dramatic or emotionally charged when describing the gold manipulation.

To some degree, what we are talking about is semantics. That is obvious. But, unfortunately, what the gold cabal is doing with its orchestrated gold price suppression is more serious than just a polite discussion about bureaucratic maneuvers, market smoothing, or interventions. What we have here is criminal fraud, lies, and a malicious intent to harm many individuals, countries and gold companies around the world.

This should not be sugar coated or presented in a manner that suggests there is some greater good here. That is what the communists did. That is how they behaved. They knew best what was good for the people. Meanwhile, they were skimming off the goodies for themselves.

When the gold scandal is exposed and it all comes out in the wash, people are going to jail. The resulting and inevitable class action lawsuits against some bullion banks and negligent gold producers may be unprecedented. The rise in the price of gold may cause certain bullion banks or gold companies to go under. There will certainly be concern of a systemic risk problem in financial land.

All of this because a group of bullion banks and a facet of the United States government (with the aid of the Brit government) wantonly decided to destroy a free market to suit their own game plans.

Make no mistake about it. One or two entities could not have pulled the gold scheme off for such a long period of time. I suggest that the manipulation of gold began in earnest after Robert Rubin left Goldman Sachs to become US Secretary of the Treasury. I have two years worth of commentary in the various Café libraries that name those who were brought into the conspiracy to hold down the price of gold.

When the price of gold explodes, the cry will be "how did this happen?" It will cause much distress and there will be a witch hunt to determine who were the perpetrators of the disinformation and fraud that benefited the rich bullion banking crowd. With great pleasure, I will hand over the Midas du Metropole diary of the scandal to prosecutors and investigators. By the way, there are three copies of this diary, all stored in different locations.

There is no point rehashing the voluminous evidence collected over the past two years that proves beyond a reasonable doubt that the gold market is manipulated. In murder trial cases in the United States, the prosecutor need not have an eyewitness to convict the accused. The attorney must only prove to a jury that the evidence is so compelling that it removes all doubt that the crime was committed by the accused. In this case, the evidence is enough that a jury would send the accused to the electric chair if it were a capital case.

Whatever their fate may be, it cannot be harsh enough.

I have suggested in the past that the gold price would explode when the gold cartel loses control of their colluding activity and that there were several outside market events that could contribute to their forced retreat. They include a collapse of the dollar, a skyrocketing oil price, a credit crunch accompanied by contraction of bank loans, including gold, or a stock market debacle.

The action of gold over the past week was quite telling as to the extent of the gold cartel's worries. A week ago Friday, during the euro currency intervention, gold shot up $6, only to be beaten back down that day by Chase Bank and Co. It rallied again the beginning of this past week, only to be substantially battered the past two days - even though the euro did not budge and the dollar weakened. In the end, the gold price is now only a couple of dollars higher than before the euro intervention was announced. The weakening of the dollar had little short term effect on the gold price.

The gold big picture is even more telling. One year ago today, the price of gold was headed for the moon, with bullion dealers and some gold producing companies in a state of panic due to the meteoric rise in the price of gold. Since then, the gold cartel has come in over the past year to take the gold price right back down to a price, once again, to only a few dollars higher than when the surprised Washington Agreement was announced.

Free markets just don't act like this - over and over and over.

What has confounded some in the GATA camp is why the cabal is keeping the price of gold so low. Too much gold is being consumed at too cheap a price. Demand for gold increases in gold devouring India and in the Far East as the price retreats. Gold companies are shutting down mines because of the low price. Some are being ruined. The result is that gold supply is decreasing, making the manipulation that much more difficult.

There is only one answer we always come up with; they are that desperate and afraid that even a rally up to $290 now, in this fragile stock market environment, might attract so much new investment demand that they could lose control of gold as they did last year.

That loss of control could send gold up to, not $337 per ounce, but $437 or $537. GATA knows that BOE chief Eddy George and friends were panicked a year ago and thought gold was headed for $400 even then - at the height of the gold buying frenzy. They know, from that experience, they may not be able to stop it next time. One more year has passed. One more year of coming up with 1500 tonnes of gold supply to fill the natural/supply demand deficit; the amount needed to keep the price from rising.

Promises, promises, promises that gold will fly some day. Great, but WHEN you all ask? I don't have that answer except to point out that day is drawing nearer and nearer.

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Gold is widespread in low concentrations in all igneous rocks.

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