Presidential Candidate - Ron Paul - Says Gold Market Has Been Rigged For Decades

Gold bugs are jamming the airwaves today after Ron Paul - Republican Presidential Candidate - stated that central banks around the world have been colluding to keep gold down for the last 20 years by “dumping it”. You can watch him make the statement in this 2 1/2 minute interview with TheStreet.com

People like Bill Murphy at Le Metropole Cafe and The Gold Anti-Trust Action Committee (GATA) have been pounding the table on this issue for years but have often been dismissed as extremists, conspiracy theorists and even quacks.

However, their theory has started to find real support in recent years, beginning with John Embry’s publication of “Not Free, Not Fair: The Long Term Manipulation Of The Gold Price”

Now, you’ve got Ron Paul saying the gold market has been rigged for decades. In case you did not know, Paul has served on the House Banking committee and currently serves on the House Committee on Financial Services and the House Committee on Foreign Affairs.

Nobody will ever be able to confirm the collusion but these are all some pretty smart people. The John Embry piece is a must read if you want to know the basis of the collusion argument and be able to judge for yourself. However, if they are right, the natural laws of money and economics are eventually going to takeover and gold is going to erupt from the pent-up pressure.

Ultimately, this may be the only evidence of collusion and manipulation claims.

EVIDENCE OF ALAN GREENSPAN MANIPULATION IN 1998

Personally, I started getting suspicious when Alan Greenspan went on what was essentially a “sell your bullion and buy US paper” tour back in 1998/99 around the time of the Long Term Capital Management crisis that almost single handedly took down the stock market. Central Banks around the world started selling off their gold reserves like a post-holiday fire sale. The Bank of England sold 60% of its reserves. Clearly, something was up.

Around that same time he also stated “Central banks stand ready to lease gold in increasing quantities should the price rise.” Again, something was clearly up. I found another article from TheStreet.com dated May 7, 1999 that neatly summarizes this period.

In the meantime, the spot price of gold is now trading at $894. Wow.

Regards,
George