28. What is true about the manipulation of the gold price?
Much is written about the manipulation of the gold price and silver price. Sudden price movements to the downside are quickly associated with manipulation by some, while identical price movements to the upside do not cause similar surprise.
If we look at the gold market from a distance, we can say that the existence of a futures market for gold is the manipulation. The introduction of futures contracts and options made it possible to trade a position in gold on paper that does not actually exist. While physical gold is available in a limited quantity, there is no limit to the amount of gold that can be printed on paper. Investors who think they own physical gold with a paper instrument should be aware that physical gold is not always fully covered.
The GATA has been gathering evidence about manipulation of the gold price for years
