Gold Price Supresion Plot goes Mainstream

Gillian Tett, managing editor of the Financial Times, the world's most influential economics paper, rocked the investing world today by endorsing the idea that the world's Western governments have been colluding to suppress the price of gold in order to prop up the appearance of value of their paper currencies.

This idea has been floated for years by GATA and other US pro-gold organisations, yet until recently it has been regarded as the stuff of crazy fringe conspiracy buffs. No more.

With the world exploding in protests against the grotesque manipulation of the world economies by Wall Street in collusion with the US government, it doesn't seem so crazy anymore to suggest that any particular market is being manipulated for economic and political ends - especially the gold market.

The general idea is that as paper currencies are printed and doled out to the banks to backstop their reckless gambling addictions, the price of gold must be capped in order to give the appearance that these paper currencies are retaining some semblance of value.

Crazy right? Well now not according to the Financial Times. And this has caused a host of commentators who have ridiculed the idea for years to suddenly turn on their heals and admit there could be some validity to it:

http://www.ft.com/cms/s/2/90effa18-faa3-11e0-8fe7-00144feab49a.html#ixzz1bka2dWt2

"Out there in the world today, a cabal of western central bankers is secretly determined to manipulate the world’s markets. They are doing this not via interest rates, but by rigging gold prices. More specifically, they have kept bullion prices artificially low in recent decades to ensure that our so-called fiat currency system – that is, money created by central banks – continues to work. For if the public ever knew the “real” price of gold, we would finally understand that our currencies, such as the dollar, are a sham … hence the need for that central bank plot.

"Does this sound like the ranting of a Tea Party activist? A Hollywood screenplay? Or could there be a grain of truth in it? The question has been provoking hot debate among a small tribe of investors in America for many years, particularly those owning gold mining stocks. Right now it is also leaching into the more mainstream American political world...

Coincidentally Ben Davies of Hinde Capital just released a report chronicling the history of gold price suppression during the 20th Century, and reached this conclusion:

“The failure of the 1968 London Gold Pool to suppress gold saw an appreciation of the

gold price from $35 to $850 per ounce. A similar percentage today would carry gold to

almost $30,000 per ounce. This is not a price forecast but an indication that when free

market forces have been frustrated by market manipulation for a very long time, the

equilibrium price can be many multiples of the suppressed price, and the rise is typically

rapid when the suppression is overcome.”10 & 11

Does this mean we'll see gold at 30,000 dollars an ounce soon?

No.

But gold is going higher.