Use access key #2 to skip to page content.

XMFSinchiruna (26.58)

The Story That's GATA be Told



June 21, 2010 – Comments (13) | RELATED TICKERS: GLD , JPM

This article is the result of my April interview with Bill Murphy, co-founder of GATA (Gold Anti-Trust Action Committee).

Many thanks to Fools who issued questions for Mr. Murphy on my blog prior to the interview, which you will find answered in the piece.

I continue to encourage all Fools to explore the allegations of GATA and their body of supporting evidence regardless of whether invested in gold or not. This price suppression affects every single investor in the world, and it is a key aspect of due diligence to at least understand some of the specific reasons why GATA has come to the conclusions they have on the matter.



Murphy: "How has every scandal that has really been an important one broken? Revco, Enron, Madoff ... it has to blow up. And it's so sad. All the whistleblowers at Enron, and in the Madoff scandal, were ignored or ridiculed, like we've been ridiculed for the last 10 or 11 years. It's always the same, because we're taking on the rich and the powerful in America ... and they don't like it. Unfortunately, that's what it's going to take. It might be some kind of default on gold and silver delivery. It takes the markets to blow up, and then you have the big to-do about 'how could this have happened?' It makes me sick to my stomach."

Murphy: "Second of all, the American public is almost totally not involved in gold. There's very little interest yet. That's how much of a bull move we have left. If I can do nothing else, I hope your readers will go and get to some sharp gold bulls and find out which of these little gold stocks to buy. It hasn't even started. It's like in the Internet in the first year when it was founded. That's how much money is going to be made by those people who are willing to do their homework and look into this."


If you have any questions or comments, please don't hesitate to raise them here. As always, if you appreciate the content of the article, please rec it at the source. :)

Fool on!


13 Comments – Post Your Own

#1) On June 21, 2010 at 6:07 PM, binve (< 20) wrote:

Great article, thanks!!

Report this comment
#2) On June 21, 2010 at 6:57 PM, jesusfreakinco (28.28) wrote:


Great article.  I was hoping for a few more questions being answered...  So many questions... so little time :)



Report this comment
#3) On June 21, 2010 at 8:07 PM, Starfirenv (< 20) wrote:

Strongman- I seem to have missed the "Wow...just wow" (from 9 weeks ago). Pretty weak recap. Sorry.  -1 rec

Report this comment
#4) On June 21, 2010 at 8:57 PM, ChrisGraley (28.58) wrote:

+1 rec, but I was hoping for more.

I realize that there was a rush to get questions the last time, but hopefully you can get a longer, more planned interview with him in the future. 

Report this comment
#5) On June 21, 2010 at 9:08 PM, silverminer (29.68) wrote:

These are merely excerpts of a much longer interview that did indeed go further in depth into multiple topics. More than that I can not really get into. Thanks for understanding.

Permit me to offer this one additional excerpt:

"Bloomberg has been silent about this for 11 years. The same with Reuters. They all covered the CFTC hearing, but they didn’t mention a thing. The Wall Street Journal remains silent. We've been sending stuff to people for 10-11 years: silence everywhere. Part of it is that they're scared … they're scared that they're advertising is going to be pulled. Glenn Beck, Dylan Ratigan … they're supposed to be big expose people … we've called these people for months. The producers won't touch it. And yet we just came out with the whistleblower stuff that all hangs together. Silence? How can this be? Here's what I would like to say: Anyone who thinks that we have a free financial press in the United States is clueless. We don't. You can quote me on that one … we don't."

Report this comment
#6) On June 21, 2010 at 10:58 PM, workfor (< 20) wrote:

Great article. Only the truth will set fools free. Thanks!

Report this comment
#7) On June 22, 2010 at 7:44 AM, ralphmachio (< 20) wrote:

So, by this logic, the press must first fail in order for precious metals to really do their thing? Assuming the press' job is repression of the facts? Tough to work against the man. 

Report this comment
#8) On June 22, 2010 at 7:55 AM, silverminer (29.68) wrote:


Precious metals will do their thing, and the press is not needed one way or the other for that to happen. The only thing the press will fail in doing by not covering this issue or conducting old-school investigative journalism is to help people understand what is transpiring and position themselves accordingly.

Report this comment
#9) On June 22, 2010 at 1:55 PM, XMFSinchiruna (26.58) wrote:

A link to the article was posted at GATA's website:

Report this comment
#10) On June 22, 2010 at 4:06 PM, 100ozRound (28.59) wrote:

Clever title Sinch!

Report this comment
#11) On June 22, 2010 at 5:37 PM, jesusfreakinco (28.28) wrote:


Any truth to this?  Isn't GLD mostly paper?  How can one confirm their physical holdings?

Report this comment
#12) On June 22, 2010 at 7:07 PM, XMFSinchiruna (26.58) wrote:


Whos said GLD is mostly paper? I think you may be misunderstanding the red flags concerning GLD. 

GLD's NAV is posted daily on its website, corresponding to its reported physucal bullion holdings. Now, I haven't visited the vault myself, but no one other than the custodian and GLD's auditors can know for certain whether the bullion reporting is 100% representative of what's in the vault.

What I do say about GLD and similar vehicles is that the fact that custodian bullion banks are identified as the primary short holders on the COMEX, this raises the question of whether ledger entries are being entered on a portion of physical holdings to back short activity and derivative plays for the bullion bank that have nothing at all to do with the fund in question. In other words, it raises the possibility that holdings become the ammunition these bullion banks require to execute a strategy of price suppression.

Now, unallocated gold certificates are apparently mostly paper and severely leveraged to the point that mass redemptions could explode the entire ponzi scheme, but the ETFs' holdings are stated as allocated holdings with specific serial numbers of bars on their lists. Now, some have looked at those serial number lists and found some oddities, but I can not be certain that this indicates a real problem with the reported holdings.

So while the ETFs may very well have the gold (and/or silver), the key question is whether those holdings remain 100% unencumbered by competing claims, interests, ledger entries, or OTC derivatives written against them. Incidentally, I have the exact same set of questions about the U.S. gold reserves... 1. Are they really there? (perhaps in part); and 2. Are they unencumbered (fat chance!!!).

I hope this helps to clear this up.


Report this comment
#13) On June 22, 2010 at 8:31 PM, jesusfreakinco (28.28) wrote:


Thanks!  That is why I asked...  :)


Report this comment

Featured Broker Partners