GATA Secretary Chris Powell Warns of Paper Gold Risks in Global Market

Chris Powell, secretary and treasurer of the Gold Anti-Trust Action Committee (GATA), discussed gold market manipulation and the paper system in a recent podcast interview with Money Metals. GATA was formed in 1998 to investigate and expose what its founders believed was manipulation of the gold market.

Powell argued that a quarter-point rate hike by the Federal Reserve is insignificant compared to the scale of U.S. deficit financing and government borrowing. He described the present financial system as one of ongoing money and credit creation, where expanding deficits, inflation, government power, and corruption are interconnected.

Powell contended that gold price suppression has served to obscure the consequences of government deficits and monetary inflation. However, he noted that the coalition of central banks once aligned behind keeping gold prices low has fractured, with countries like China and Russia seeking alternatives to the U.S. dollar.

Powell questioned tokenized gold efforts by London financial regulators, arguing that it may create another electronic claim on metal rather than a secure and readily available physical asset. He emphasized that investors should own physical gold as a long-term store of value, despite periodic interventions and volatility.