Dear Friend of GATA and Gold:
In its struggle against the gold price suppression scheme and surreptitious market rigging by governments generally, GATA long has failed to win support from major gold and silver mining companies, despite our frequent solicitation, perhaps because mining companies are so vulnerable to the scheme's instigators -- governments, which control mining licenses, royalty requirements, and environmental regulations -- and to the scheme's agents and profiteers -- big investment houses, which control mine finance, mining being the most capital-intensive industry.
But this lack of support doesn't mean that GATA isn't being watched closely by some major miners, as was suggested Friday when Bloomberg Television's Trish Regan interviewed McEwen Mining CEO and Goldcorp founder Rob McEwen on her program "Street Smart." Also interviewed was Philadelphia Trust Co. CEO Michael Crofton.
The program's issue was whether the United States should return to a gold standard, and while the discussion was a bit disjointed, it made plain that the gold issue is a conflict between, on one hand, the international political power amassed by the United States and imposed through its issuance of the only world reserve currency, and, on the other hand, the desire for more limited government and free markets.
As the discussion raised the possibility that a massive upward revaluation of gold would be necessary to implement a gold standard, Crofton argued that this would be the same sort of government intervention deplored by gold advocates.
McEwen was cut off a bit before he was able to clarify his counterpoint, but it was that powerful forces are already intervening surreptitiously in the gold market. He said he recently had seen "a very interesting study" showing that the gold price always rises when Asia is trading and falls when London and New York are trading and that anyone buying at the open in New York and London and selling at the close would have lost most of his money for years even as the gold price was rising dramatically over the same period.
Of course that conclusion was originally the work of GATA board member Adrian Douglas and GATA consultant Dimitri Speck and was recently elaborated upon by Sam and Bob Kirtley of SK Options Trading in Wellington, New Zealand, whose work GATA also publicized in January and likely is the recent "very interesting study" to which McEwen referred on Bloomberg TV yesterday:
The excerpt with McEwen and Crofton from yesterday's "Street Smart" program is posted at the Bloomberg Internet site here:
McEwen's comment about the "very interesting study" begins at the 5:35 point.
GATA and its supporters may take heart from this, at least as it shows that our work is getting around and becoming a sort of open secret. And our friends are fond of quoting the aphorism attributed to Gandhi that "first they ignore you, then they laugh at you, then they fight you, and then you win." But your secretary/treasurer suspects that, when the gold price suppression scheme blows up or central bank policy on gold is suddenly and openly changed from suppression to revaluation, the golden codicil to Gandhi's remark will make it read: "First they ignore you, then they laugh at you, then they fight you, and then you win but are still ignored."
We could live with that, as GATA was formed to help right a cosmic wrong, not to glorify anyone. But if Gandhi's remark has to be modified in regard to GATA, winning sooner rather than later would be nice, if only because your secretary/treasurer would enjoy spending much more time this summer outside in his little garden, where mere vegetables are infinitely more appreciative than the most respectable gold mining executives.