by David Kranzler
Investment Research Dynamics
The following commentary is from Chris Powell, the Treasurer of GATA. I fully endorse his view. In fact, when the report initially surfaced that the World Gold Council reported Central Banks to be net sellers of gold in September, I summarily dismissed it for the reasons stated below by Chris.
According to the old saying, sometimes attributed to Mark Twain, there are three kinds of lies: ordinary lies, damned lies, and statistics.
Of course not all statistics are lies, but statistics always need to be challenged when the entities issuing them have an interest in spinning them a certain way, as government almost always has such an interest.
So while it is understandable, given the slovenliness and corruption of mainstream financial news organizations and market analysts, it is still disappointing that central bank gold statistics are routinely accepted without question, even as it is the longstanding policy of the primary compiler of these statistics, the International Monetary Fund, to fudge the numbers.