I have prepared a letter to send to Newmont, the only real Australian member of the World Gold Council. Anyone concerned about the gold price in fact could write to Newmont. Feel free to copy the letter and suggest any improvements;
Dear Sir,
It has become obvious to gold price watchers over the last 20 years that the gold price has been moving in contradiction with its main roles. It has not kept pace with inflation nor did it as a 'canary in a coal mine' should, give sufficient warning of the Global Financial Crisis.
Recently significant public documentation has surfaced indicating that the US Federal Reserve (and other Central Banks) have been secretly involved in the gold market, while at the same time denying it to the public. Such is the concern over the US Central Bank activities that on the 11th December 2009 Senator Ron Paul was successful in having his landmark Bill to audit the US Federal Reserve pass the US House of Representatives with a majority vote. Legislation Paul said in 2002 "would limit the ability of the President or the Treasury Secretary to manipulate worldwide gold prices".
On June 8th 2001 US Federal Reserve Chairman Greenspan denied that any activities regarding the gold market were undertaken by the organization however in a dramatic about-turn on September 17th 2009 the US Federal Reserve admitted in writing to GATA that Gold Swap arrangements were actually being used. On Thursday December 31st 2009 GATA lodged a writ in a US district Court of Columbia seeking that the secret Gold Swap agreements between the the US Federal Reserve and others be made public under Freedom of Information laws.
According to its website, the World Gold Council "founded in 1987, is an organization formed and funded by the world's leading gold mining companies with the stated aim of stimulating and maximizing the demand for, and holding of Gold". In contradiction to that aim the World Gold Council issued a report on 2009 in which it describes an increase in gold demand as a decrease, explaining that it did not count central bank net gold buying as demand because "the central banks are traditionally sellers of gold". The WGC is not a geniune organization as it has never addressed the serious questions about Central Bank activity in the gold market, nor any of the landmark documentations produced by GATA or others. Newmont Mining Corporation is only one of two gold producers represented in Australia- the second largest producing nation in the world, who are members of the World Gold Council.
In order to maintain public confidence in the ability of gold producers to make a profit and the health of world gold markets, the serious questions hanging over Central Bank activity in the gold market must be answered. The existence of transparent and healthy gold market is primary to the ability of our company to make a profit. I am writing to you as Chairman of Newmont in which I am a shareholder, to request that Newmont stop throwing money away in sponsorship of the World Gold Council, and instead sponsor GATA who are truly working for the return of transparency and integrity to world gold markets.
Yours Sincerely,
_______________
NEM Price at posting:
$5.32 Sentiment: None Disclosure: Held
