NO GOLD MANIPULATION, RIGHT?
I have no idea why no one has done this yet. Maybe someone
did, and I missed it. That's very likely, judging from the
amount of stuff I have to read every day. Nobody can read
everything, of course.
Despite the massive evidence which the likes of GATA and its
supporters, including Frank Veneroso, James Turk, and others
have amassed over the past six years or so, there are still
people (especially mining execs and mining web site owners
who should know better) who continue to pooh-pooh the very
notion of it.
Once a gold analyst has shown me a CRB-Gold chart some time
ago that looked something like this:
Of course, the chart raised this question: If
gold is so "manipulated", then why does it so perfectly
track the CRB? Are all commodities manipulated in the
same way? Doesn't this prove there is no manipulation?
Well, that depends.
It depends on the time frame you are looking at. The shorter
the time frame, the closer together appear the starting points
for any particular price line on a multi-commodity chart.
Just playing around a bit while checking how far gold is below
the rest of the CRB, I hit the "1950" button on
my trusty "Economagic" service, and look what I
While the other, truly industrial, metals sub-index (the
green line) sometimes over-and sometimes undershot the CRB
Futures Index, gold has just languished far below the $400
line since 1981.
Isn't that kinda strange?
Kinda strange, also, that precisely since 1971, when Nixon
took the dollar off the international exchange standard, the
other commodities took off and soared while gold kept scraping
the bottom of the barrel until only a couple of years after
it was "officially demonetized" (demonized??) in
At that time it began a humongous catch-up bid, which it almost
won - except for Paul Volcker's 1980 interest-rate trapez-act
born of sheer desperation.
After that, the CRB rarely ever retraced its path to less
than midway between it's 1981 high and the barrel's bottom,
and on the only two occasions it did, it jumped right back
above it. Only gold was condemned to a rueful existence far
below the $400 water mark - until recently.
The question naturally comes to mind: Why?
If gold was and is truly "just a commodity" as so
many brain-washed (or worse) financial analysts are claiming,
then why didn't it move right along with the other commodities?
Manipulation? Naah! No way. It just can't be, ... right?
Well, if you have a better explanation, one that equally jumps
right in your face, and which equally comports with all the
underlying factors and historical developments, I'd like to
By the way: do you notice the indexes' collective action since
2001? At right around the very same time, all three of them
bottomed and have gone nowhere but up since then. Interesting.
Hmm...; Could gold be in the process of repeating its feat
of 1980? Might it even break its own record?
The picture gets especially interesting when the dollar is
added into the equation. (Now the dollar is represented by
the green line):
aNote the vertical black line showing that all three commodities
reversed course within months from each other. Gold and the
CRB in 2001, and the dollar in January of 2002, when the physical
component of the new euro currency hit the markets.
And now to the absolute strongest part of the proof that gold
was, is, and will remain, the focus of world-wide monetary
policymakers, and remains the standard against which they
measure their "performance." (Drum roll, please.)
The strongest evidence lies in what you
You simply don't see any of the mind-boggling contortions
among virtually all of the economic parameters in the pre-1971
period. Prior to the dollar coming off gold in 1971, the world's
economic seas were - well - calm.
Yes, there was the Great Depression. Yes, there were wars,
recessions, inflations, depressions, etc., but when compared
to the whiplash-causing aberrations we have experienced ever
since, it was all a cakewalk. I suspect that even the "great"
depression will be remembered as a mere cakewalk when the
new, far greater, depression that is yet to come sets in.
It may come gradually, or it may come abruptly, but come it
will, and the effects will be severe.
If you are an economist and have ever wanted to see a visual
representation of the imbalances that result from following
Maynard Keynes idiotology too much, all you have to do is
look at this chart. Maybe you'll decide to seek another field
after that. It's gonna be very stressful if you decide to
support the establishment version of why things are the way
What the world needs to do is to pour some "yellow oil"
on these crazy economic waves that we (or rather our leaders,
with our ill-informed acquiescence) have created for ourselves.
Only gold can calm this mess. No euro, no optimum currency
regions, no implanted RFID chip system, can hide this turmoil
Any government, any business, any individual who (or which)
does not align himself (or itself) with this undisputable
reality will eat dirt. Maybe first-class dirt - but it will
still be dirt.
This chart literally cinches all attempted arguments to the
contrary right into the garbage sack where they belong. There
isn't really anything else to be said about it.
vs DOLLAR MONITOR
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