Is Collapse Near for Second 'London Gold Pool'?

   MANCHESTER, Conn. - (BUSINESS WIRE) - 8/19/2010 - Manipulative selling of gold on the daily London PM fix has failed to suppress the gold price since April 2009, when China announced that it quietly had accumulated a large gold reserve over the previous five years, the Gold Anti-Trust Action Committee (GATA) disclosed recently in a statistical study by its board member, Adrian Douglas.
   Since April 2009, Douglas finds, ever-increasing dumping of gold in London by central banks and their bullion bank agents has been having less and less effect on the gold price. He concludes that the second "London Gold Pool" -- a clandestine one, unlike the first -- is imminently facing a collapse identical to the collapse of the first as physical gold demand overwhelms the ability or the desire of the market riggers to provide the necessary metal.
   The result of the 1968 failure of the first London Gold Pool to suppress gold was an appreciation of the gold price from $35 to $850 per ounce. A similar percentage today would carry gold to almost $30,000 per ounce. Douglas says, “This is not a price forecast but an indication that when free market forces have been frustrated by market manipulation for a very long time, the equilibrium price can be many multiples of the suppressed price, and the rise is typically rapid when the suppression is overcome.”
   Douglas' study is titled "The Failure of the Second London Gold Pool."   GATA is a non-profit educational and civil rights organization founded in 1999 that exposes and supports litigation against manipulation of the gold market and related markets. GATA is suing the Federal Reserve in U.S. District Court for the District of Columbia for access to gold-related records the Fed refuses to disclose.