GATA and Gold: The Truth is Revealed
I'll try to make this blog as brief and as non-confrontational as possible. But that's a pretty tall order, given the nature of this topic. Here's the jist of it:
1. Several posters on TMF have been spreading unfounded conspiracy theories about gold. I am not accusing them of doing this intentionally, but I believe they have been misinformed.
2. These ideas come primarily from a man named Adrian Douglas of a group called GATA (Gold Anti-Trust Action Committee). GATA is an organization which spreads accusations of "price suppression", by central banks and gold cartels, who allegedly want to keep the price of gold artificially low.
GATA's members, unsurprisingly, hold large positions in gold. Also, the group itself is partially funded by gold companies (in an obvious conflict of interest).
3. One of GATA's claims is that the Scotia Mocatta gold vault in Toronto is "empty". This is a lie. There is simply no excuse for spreading rumors like this on TMF without having proper evidence to support it.
If a simple "smell test" wasn't enough to refute this claim, it has been strongly refuted by a man named Nick Barisheff. Please read the section titled, "The Harvey and Lenny Organ Interview" at this link.
4. Another GATA claim is that people are buying "paper gold", which does not really exist. This is another false, fear-mongering claim. The truth is that when you buy an ETF or a financial instrument, you need to understand what you are really buying. It's as simple as that. But there is no conspiracy, and gold is not going to rise to stratospheric levels once this "conspiracy" is revealed.
To understand the concept of "paper gold", please visit this link again and read the section titled, "Is there a real problem with the paper-to-physical ratio or not?"
(the entire article is worth reading, and it debunks many of GATA's claims)
Now, if you want to read an even better de-bunking article, this one pretty much hits the spot.
This article was written in 2009, and you may have noticed that Mr. Christian accepted GATA's challenge to a public debate. The debate took place a few months ago. Who was the winner? Well, see for yourself. You don't have to accept that site's analysis, of course - they provide an mp3 link of the entire debate.
All I want to say is, please do your due diligence. Don't just listen to the people who scream the loudest, and make the most outrageous accusations. The true experts are usually the most quiet, and the most boring people out there. I hope these links can help clear up some misconceptions that have been circulating around TMF.