Bill Murphy is the cofounder and Chairman of the Gold Anti-Trust Action Committee. A graduate of Cornell, he played wide receiver for the Boston Patriots and then trained on Wall Street with Merrill Lynch. He worked for Shearson Hayden Stone and Drexel Burnham before founding his own brokerage firm. He is the Patron of Le Metropole Café, a website for gold investors, which offers a two-week free introductory membership. He spoke to Kevin Michael Grace November 20.
RW: Gold has risen from $252 in 2000 to over $1,900 last year. Some people argue that if gold suppression exists, it’s not been successful.
BM: Anybody who thinks that way knows nothing about supply and demand fundamentals, nothing about where the price of gold should be. Perhaps they should look at the share prices of gold and silver stocks and then understand what the suppression has done. There are people going out of business at these prices. All they [the gold suppressors] are doing is managing a retreat. It’s like a murder trial. You can’t just look at one thing to convict someone; you look at all the evidence. How can gold go up 12 years in a row? How can that be? It’s never happened to any asset class in history. Never once. That one fact should tell people there’s something going on.
RW: When QE3 was announced there were a lot of people who thought that the increase in the price of gold would mirror that of QE1 and QE2. So far, the increase has been rather modest.
BM: Modest? As of last night it was zero.
RW: To what would you attribute that?
BM: Black is white, and white is black in the gold market. First, we were going into the election, and it was one coincidence after another. Gold gets bombed ahead of the election, the stock market goes up just when people were making up their minds about the economy. The unemployment number miraculously comes down the month before the election. As soon as the election is over, everything falls apart again. There is almost nothing these days that isn’t manipulated or rigged.
RW: US economic numbers seem to be empirically almost worthless, and yet they are the basis on which we say the economy is good or bad.
BM: I call it behavioural finance. That’s what they do. That’s what the government does to influence the decision-making process of people to create the illusion that the economy is good.
RW: There’s an underlying reality that can’t be massaged away.
BM: That’s right. It’s the old philosophy of Robert Rubin, if you can do something short-term, do it, and kick the can down the road six months. That’s what everyone does all the time now and especially ahead of this election. Everything is a “conspiracy,” and that’s how they marginalize the word. That’s what they do to mock people. Oh, you’re a conspiracy nut. But Joe Paterno and Sandusky was a conspiracy. Madoff was a conspiracy!
RW: I’m old enough to remember Watergate, which was an epochal moment in American history. It’s when a younger generation took over, as we saw in that movie All The President’s Men. Watergate was a real conspiracy, and there was a real coverup, and a whole bunch of people became famous and wealthy as a result of exposing that conspiracy and coverup. Yet now, as you’ve said, the very word “conspiracy” has become a joke. The idea that anyone could believe that these things are going on behind closed doors—only stupid or crazy people would believe that.