Professional Documents
Culture Documents
Its enough that the mainstream financial media seems hell-bent of bashing
gold. (Of course, silver gets hardly a mention). But GATAs Chris Powell
has been on a tirade of late, picking apart the lower hanging fruit of these
theories and misplaced assumptions, if not outright desperate attempts to
rationalize technically driven market prices.
The following is answer to a gold insider is a must read.
Powell tells it best, though I think its fair to add a few questions to the ones
he poses for Mr. Moriarty which Ive included below if anyone were
inclined to apply the same misunderstanding about silver price discovery.
No, Bob Moriarty, we don't want to live with market rigging
To hear 321Gold.com's Bob Moriarty tell it, GATA has conquered the world
and now has more influence on the markets than the central banks we
long have been clamoring against.
For in his commentary today, "Capitulation in Gold" -http://321gold.com/editorials/moriarty/moriarty072715.html
-- Moriarty writes:
"Speaking of GATA, they have done billions of dollars of damage to
investors. Somehow they convinced tens of thousands of people that when
gold went from $252 to $1,923 it was being suppressed, and like the gold
derivatives time bomb, gold was going to explode one day soon. If
someone was manipulating gold from $252 to $1,923, it wasn't down.
Actually if you bought lumber or soybeans and they made the same
percentage move as gold did from 1999 to 2011 and you didn't sell, it's
because you are too stupid to recognize the difference between an
investment and a religion."
Yet throughout gold's price rise, the gold market was subject to frequent
interventions, most instigated by central banks, that panicked retail longs
and allowed the bullion banks, agents of the central banks, to cover their
short positions and begin the market-rigging cycle all over again, slowing
http://www.gata.org/node/14385
http://www.gata.org/node/14411
Of course "perfectly legal" does not mean perfectly fair. For should
investors in countries purporting to have free markets have to be trading in
ignorance against government agencies that are authorized to create
infinite money?
Moriarty continues: "I doubt if any of the 'manipulation-conspiracy' people
actually care about making money."
That's a good point, though at least in regard to GATA it is not the
accusation Moriarty intends. In fact GATA is a nonprofit, federally taxexempt civil rights and educational organization based in the United States
that seeks to expose market manipulation and restore free markets,
particularly in the monetary metals. Of course as individuals we'd all like to
make money but you can't do that as a nonprofit, federally tax-exempt
organization. You do that as an individual or as a business.
Moriarty continues: "Gold shares have been on the block for the last six
months. If you were smart enough to buy them, you will be just fine. Sure,
some are going to disappear, but while the 'manipulation-conspiracy'
people are whining about how terrible it is for a financial product to be
manipulated, you are going to own a lot of 10-20-baggers from here."
So there's Moriarty's real grievance with GATA: By warning investors about
the rigging of the monetary metals markets and the challenges they face,
GATA is getting in the way of his touting the stocks in which he has
invested, like the touting contained in the paragraphs immediately
preceding his criticism of GATA today.
Moriarty concludes: "All financial markets are manipulated. Live with it."
This observation by Moriarty is actually progress, since, when GATA
began, he and others like him denied any manipulation of the monetary
metals markets at all. Now that market manipulation is so obvious that
anyone who denies it risks losing all credibility, the former deniers can only
try to minimize it.
As for "living with" market manipulation, Moriarty is welcome to do so, and
maybe he'll grant others the right not to.
category?
Do these big banks also have perfect trading records? How is that
possible?
Do they have access to the fastest trading channels to enabling them to
front run trades? And spoof trade?
Do 4 or less of these large big bank commercial traders maintain
positioning concentrations that would make the Hunt brothers blush?
Are those positions, by definition, manipulative and illegal on their own whether hedged or not?
And wouldnt the losses from those supposed hedges (in a market that has
been falling for four years) effect the perfect trading record?
Do they profit from directing the technically driven behavior of the
speculators?
Do they often (recently) stop out, or take possession of physical metal for
their own accounts.
Are they not giant nodal points - and share holders of the Federal
Reserve?
Those who refuse to ask questions, deny or, oppose the idea that market
are manipulated reveal a more sinister agenda, promoting a disservice that
feed upon the notion that a system of gambling detached from real world
fundamentals is sustainable for the long, intermediate, and potentially very
short term.
For more articles and commentary like this - to explore and find some piece
of mind in the space between actual price discovery and the reality of the
macro-financial state of things - visit us at
http://www.Silver-Coin-Investor.com