After my article Gold price manipulation - DOES IT MATTER? was posted yesterday on www.clivemaund.com and a number of public websites, I was somewhat surprised to find myself the subject of a personal attack by a Chris Powell, who is apparently the Secretary/Treasurer of an organization going by the acronym of GATA (Gold Anti-Trust Action Committee), that was delivered in the form of an Email circulated to the "Friends of GATA and Gold", the contents of which are reproduced unedited below. This unwarranted attack, which was foolishly made not just against myself but against Dennis Gartman of The Gartman Letter and Technical Analysts generally, is something I feel entitled and obliged to respond to, and you will find my response lower down the page, but first read the contents of Mr Powell's Email...

5:20p ET Tuesday, February 6, 2007
Dear Friend of GATA and Gold:
Gold market and technical analyst Clive Maund's new commentary asks the musical question: "Gold price manipulation -- Does it matter?" He concludes that the answer is no more important than whether the chewing gum loses its flavor on the bedpost overnight.

But Maund's commentary itself is important for signifying that manipulation of the gold market is increasingly accepted as a given by analysts, if only grudgingly, since, of course, manipulation makes a mockery of analysis and analysts alike. Indeed, technical analysis of a manipulated market is worthless if it takes no account of the manipulation. That is, despite their conscientiousness, people like Maund have been largely wasting their time.

In his new commentary Maund sounds just like another technical analyst, Dennis Gartman of The Gartman Letter, who even just a few days ago was not only expressing indifference to manipulation of the gold market but also was arguing fatuously that suppression of the gold price should be welcomed by gold advocates and investors because it gives them a chance to accumulate more metal at a discount. Of course this opportunity does nothing for those who are already fully invested in gold and shares of gold mining companies and want fair valuation of their investment now. Nor does this opportunity avail those gold investors who will die today or tomorrow or soon after having been long deprived of fair value for their investment. For manipulation of the gold price expropriates ALL gold investors EVERY day.

Maund writes that the gold price suppression scheme is sure to be beaten by the market eventually. Maybe, but eventually really isn't soon enough. And Maund fails to note the purposes of the gold price manipulation outside the gold market -- the deception of investors in stocks, bonds, commodities, real estate, and everything else.

Those who have been exposing the manipulation of the gold market may be glad that Maund is coming around a bit. But it's really not enough if Maund himself is starting to figure things out. There's still a whole world that may not be as complacent about its screwing as Maund is.

In any case, you can find Maund's new commentary at GoldSeek here: http://news.goldseek.com/CliveMaund/1170780898.php

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Response by Clive Maund:

If you take the trouble to read my article through, which Mr Powell evidently did not, you will probably agree that it is objective, which is a lot more than can be said for Mr Powell's response, that can only be described as emotional and petulant and while it may go down well with his narrowing circle of followers, will rightly be viewed with contempt by the wider world. Here is a what an analyst at an important and respected bullion dealer wrote me this morning...

Hello Clive,

Indeed, no surprise that you and/or anyone who dismisses any particular aspect of manipulation should come under GATA's fire. I have, in fact, found that their modus operandi is limited to ridicule and personal attacks. What else are you to do when your 'proof' is so off base that no serious analyst, organization, or media outlet will possibly take it at face value?

There is also the element of publicity for them. Any time they can blast hot air towards someone who disagrees (and the more respected that person may be the better) they draw their (few) supporters closer in a circle. I could give you many quotes from market mavens about GATA's tactics and 'facts' - but that is for another day. I can be quoted that I have always believed in the fact that the masses rule, and that since 2001 that masses have indeed come to rule by owning more than CB's. I have also stated that 'sinister' manipulation is not a motive (and there is where we are in agreement that were it real, it would be doomed to fail) and that the alleged missing gold was all there last time I looked (which was at least six years after they said the plot began). Markets being managed is nothing strange or evil for that matter - it happens in currencies, equities and so on. To believe with religious zeal that a handful of Darth Vaders is out to try to keep billions of Patels, Chins, and Joneses from ever making money by owning gold (or preserving their wealth for that matter) is a science-fiction scenario that would have utterly failed by now. Or else, JP Morgan would be a footnote in history.

I remain of the opinion that Murphy & Co. should be forum material - and strictly forum. Commentaries should be left to people with acumen.

Closing comments by Clive Maund...
Mr Powell needs to learn that attempting to aggrandize yourself or any organization you are involved with by means of personal attacks is doomed to fail - it belittles and brings disgrace upon the perpetrator and his associates. A cottage industry has been built up based on this conspiracy nonsense which is distracting some more gullible investors from the main message that the market itself is putting out, which is that gold is in a powerful primary uptrend that looks set to continue into the foreseeable future, a point forcefully made in my article. Mr Powell opens his mail, which if it were written as an article could be fairly titled "How to lose my remaining credibility in one day", with the address "Dear Friend of GATA and Gold" - at www.clivemaund.com our friends are people and maybe animals, such as cats, dogs and horses, gold we invest in and trade.

I rest my case...