Eric Sprott Clains Gold Manipulated Downwards

Over the last ten years, groups that Peter Brimelow calls "radical gold bugs" have claimed that gold prices have been manipulated downwards by governments. The motive is, governments see spikes in gold as signs of non-confidence in their own monetary policies.

Now, Eric Sprott has joined their ranks.

He has no smoking gun, but he's complied indirect evidence that gold shoots up less than comparable inflation-linked commodities. Over the last ten years, crude oil, silver, copper and nickel have all had at least one day when they've shot up more than 10%; the first and the last have had eleven days. Gold has had none. All four of those other commodities have had solidly double-digit numbers of days when they've gained more than 5%. Gold has only had three. Either gold is more sedate than those other inflation-linked commodities, or someone's stepped in when gold's shot up.

"Even though the gold market's one of the most emotional markets there should be, it never acts emotionally on the upside, which is very bizarre," Sprott said.

"Gold should be more emotional than oil, for example, or corn or wheat, but it's not... [The central banks] just don't want it to flare up too much so there's no mania that develops. If you and I saw the gold price up $100 in one day, we'd say, 'What the hell is going on? Is there a war? Is there a financial crisis?' Because gold is the canary in the [coal mine]... So it just never is allowed to do that."

Here's the thing: Even with day-to-day manipulation, the gold price rose 425% over the last decade. According to Sprott, a lot more is yet to come...

Sprott is one of the heavyweights of the gold market. He adding his voice to the others who've claimed manipulation is going to give their case a lot more credibility.