The newest report is full of great information, however, there is something about it that’s beside the point. Chris Powell explains…
Dear Friend of GATA and Gold:
Liechtenstein-based investment fund Incrementum’s annual “In Gold We Trust” report, compiled by Ronald-Peter Stoeferle and Mark J. Valek, was published this week and again described the reasons for gold’s glorious prospects. Among them:
— Loss of trust in international relations and everyday society amid ever-more-polarized politics.
— Gold’s generally good performance in most currencies apart from the U.S. dollar.
— The extreme lows at which commodity prices generally now reside, implying a reversal.
— Increasing purchases by central banks.
But while the report mentions past currency market interventions by governments and central banks that have affected asset prices, there doesn’t seem to be anything in the report explaining why, despite the longstanding supportive fundamentals, gold has yet to realize its glorious prospects — why gold’s future never comes.
For example, there doesn’t seem to be anything in the report about the constant and surreptitious gold trading by the Bank for International Settlements on behalf of its member central banks, the discounts given to governments and central banks by CME Group for surreptitiously trading all major futures contracts in the United States, or the refusal of the U.S. Federal Reserve and Treasury Department to answer a congressman’s questions about which markets they are surreptitiously trading in and why.
All these developments have been extensively reported by GATA over the past year. It would seem hard for any gold market analyst to overlook them.
So while the Incrementum report is full of great research, analysis, and charts, it offers little insight about the thing that matters most: gold’s price and its primary determinant, intervention in the gold market by central banks, as lately summarized by GATA here:
When even gold’s scholars and mining companies are indifferent to the primary determinant of the monetary metal’s price, gold’s great future can seem only more distant.
Abbreviated and complete versions of Incrementum’s “In Gold We Trust” report can be found here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.