From last night's Midas:

Arnold Bock, "Where's the Gold?":

Much like GATA, Bock expresses skepticism of if not contempt for the whole gold business as it is currently constituted. He writes:

"Unfortunately, most people not directly involved in the business assume that the vast quantities of paper traded on the Comex and LME [London Metals Exchange] are a proxy for the real deal, gold bullion. Trades are not, and apparently never have been, backed by the physical metal except in relative token fashion. Some analysts may consider this reality an attempt at deception. This writer takes no position on the issue, except to state, unequivocally, that the metals exchanges do not possess any meaningful inventory of gold bullion."

At the Vancouver conference this month Nadler accused those who complain about gold market manipulation of scaring investors out of the gold market. But of course those who have complained about manipulation have forecast huge price appreciation for gold when the manipulation is defeated, even as Nadler himself has never forecast much price appreciation for gold. And just moments after accusing the manipulation crowd of scaring investors away from gold, Nadler declared that gold has "deteriorating fundamentals."

GATA is in the free-market business, not the price-prediction business. Contrary price predictions don't bother us much, especially not for the short term. But a free market in gold can be achieved only if people buy real metal, not the gold-painted securities that have been created in infinite amounts to divert investment demand away from the real thing. So hooray for Kitco if it is becoming more inclined to let the whole gold story be told. For no one ever bought even a gram of metal after listening to or reading Kitco's senior market analyst, the gold market's Tokyo Rose.

http://www.kitco.com/ind/Bock/jun292010.html

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