Hi Shaka
What a hot day you picked for marching on Joburg! It's 30C+ in the shade.
I'm sorry to hear you are not well but, as far as being "off" is concerned, that I very much doubt. All the same, should a dark mood take you, please do not wreak vengeance on thread members!
GATA is over my head. As a witch-doctor, I am unable to assess the merits of its "case" against the various institutions/corporations or even if, in fact, there is a case in law. I would have thought, providing the various participants in a market do not collude or conspire with the intention of defrauding someone, then there isn't a "case". I don't believe just keeping the price down, for whatever reason, is illegal. If someone perceives POG is "too cheap" then he gets a bargain! That is the whole basis of a market.
Further, if the CBs lend gold and are happy to receive cash in return I would have thought that such a transaction is acceptable. Is there a law that says a loan of something can't be converted into a sale? If I lend you my car, and you then want to buy it, I can't see why I shouldn't sell it if I wish to.
In a market, each participant is entitled to act in their own self-interest. And, in a big, international market, that would mean the employment of whatever methods are necessary to stabilize prices --- eg. non-disclosing of the full extent of sales or purchases and buying in or selling off, as required, possibly in different regions. I am quite sure such methods are found in any and every market. Without them, the volatility would be even worse than it is. And, market volatility is the bane of investors.
Also forward selling --- it may be disappointing to those who were looking for a supply shortage in order to trigger a price rise --- but it's clearly not illegal. Even if the forward sellers kept quiet about it. If, for example, AngloGold doesn't sell its production, in whatever way it can, shareholders will be upset. By selling forward it gets cash in advance --- cash which may be needed to fund development. As an AngloGold shareholder, I can't see that they are colluding with anyone by selling forward. If so, who? Why would AngloGold want to keep the price of gold down?! Doesn't make sense to me.
As I see it, it seems the major players in each market set the rules for that market or influence the authorities to do so. Thus, the rules for the SEC concerning trading on NYSE, for example, are not the same as the LME. And certainly not the same as the rules for the gold market which is, indeed, the most peculiar of all markets. Consider, if you will, the way in which the gold price is set every day by the half dozen "special gentlemen" in London.
So, I will be very interested to see whether actual violations in law have occurred. Otherwise, I do not believe one can resort to the law in an attempt to challenge actions which may, in fact, be unfair or even prejudicial to the desires of others but are not illegal.
I don't know what to make of Millings-Stanley. One would imagine his interest is the same as GATA's --- to increase the consumption of gold and at the highest price. However, unlike you, he doesn't see a conspiracy. So, either he doesn't know what is going on (or is telling lies) or you are wasting your time. Accordingly, if you are able to convince him, he should join you.
Indeed a most interesting situation.
Wishing you "Amandla" (= power in Zulu)
Searle
PS. Now for a swim. |
