Gary North on Pricing, Manipulation, and to What Gold is Tied?

What Do Oil and Gold Have in Common? Manipulators?

Gary North

Dec. 24, 2012

You are being manipulated by gold bugs who blame manipulators for the fall in gold's price.
Oil's price has also fallen. Gasoline prices for regular in my area are down to $3.10 or less. I saw $3.03 on Thursday evening.

Do you see headline articles on the price manipulators who have driven down oil's price? No. Why not? (1) Because there is no way for manipulators to do this. (2) Because people like cheaper oil, so they applaud this as a Good Thing, and therefore the product of supply and demand. The smarter ones blame the recessions in Japan and Europe: falling demand.

It is widely known in the investment world that the prices of oil and gold often move in sync with each other. There is a recent article that supplies evidence. I suggest that you read it. Look at the charts.

I see that gold bugs have sent out their explanations: "It's them damned speculators. Them outside agitators. They are behind all this." What is the evidence? Only that gold went down.

A few months ago, we had articles like this: "All Signs Pointing to Gold." All signs never point to anything. If they did, everyone would act, prices would change, and then the signs would again be mixed.

Whenever someone who has told you to buy gold and silver when prices were rising sends out a frantic letter telling you that the recent fall is the work of manipulators, ask yourself this: Did the promoter warn you against losses imposed by fabulously wealthy manipulators? If not, why not?

Did the promoter ever explain exactly how these manipulators can do this? Did he provide the legal and market exchange arrangements that make this possible, year after year?

Did he explain how in the gold and silver markets they can get away with this, but in no other markets?

Did he explain how this is possible when central banks are buying gold? Did he explain why anyone in his right mind would compete against central banks with his own money, leveraged 10 to one?

I have heard the story of the precious metals manipulators for 40 years. I have yet to see a detailed, footnoted study of how they do this.

I know how the consummate economic fool Gordon Brown did it. He said he would do it, and he did. I bought at lot of gold at $300 when he sold half of Great Britain's gold. He was a manipulator, but he was not hidden in the shadows.