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Chris Martenson: The screaming fundamentals for owning gold and silver

June 30, 2011 by · Leave a Comment 


9:39p ET Wednesday, June 29, 2011

Dear Friend of GATA and Gold (and Silver):

Financial writer Chris Martenson tonight attempts the comprehensive case for investing in gold and silver. But he raises and leaves unanswered a crucial question. Martenson writes:

“Federal deficits are seemingly out of control and are now stuck in the $1.5 trillion range. Massive deficit spending has always been inflationary, and inflation is usually gold/silver friendly. Although not always, mind you, as the correlation is not strong, especially during mild inflation (less than 5%). Note, for example, that gold fell from its high in 1980 all the way to its low in 1998, an 18-year period with plenty of mild inflation along the way.”

So why didn’t gold keep up with that inflation in the 1980s and 1990s? Why are financial establishment types able to disparage gold even today for having failed to keep up with inflation?

The answer is the invention and mass distribution of paper gold, gold certificates and pledges never redeemed against gold that most likely doesn’t exist, imaginary gold supported against redemption by central bank sales and leasing of gold timed strategically to discourage the market — paper gold that has deceived the world into thinking that it has many times the gold actually available.

But for supply-and-demand commentary, Martenson’s essay is still pretty good. It’s headlined “The Screaming Fundamentals for Owning Gold and Silver” and you can find it at Martenson’s Internet site here:


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

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