We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Beat The Street With SI Traders

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
To: ralfph who wrote (183117)2/15/2016 11:55:12 AM
From: teevee1 Recommendation  Read Replies (1) of 219879
you have to understand the history of paper gold. When the world went off the gold standard, the price of gold physical moved up. Along with that was very high inflation that took interest rates to almost 20%. Ordinary folks lost confidence in "coin of the realm". I remember seeing young mothers pushing baby carriages and many other folks, lined up around the block at the Bank of Nova Scotia to buy physical gold, as that was the only kind available. I remember trying to short physical gold and my broker at the time said yes, I could do it, but they wanted a $1000/oz cash in my account for each oz shorted. Needless to say, I didn't have the funds at the time. That morning turned out to be the high as there were no buyers left. In response to the general public panicking about hyper inflation, buying gold and losing confidence in paper currency, worried that it would become worthless, the G5 central bankers got together, and invented paper gold, gold futures etc. so they could not only create better liquidity in gold, but become the market makers in order to re instil confidence in currencies by crushing the gold market. The central banks held, and continue to hold the equivalent of 50 years annual global gold production, and buy and sell according to their forward to today, with most money in the system now being "digital" and over 95% percent of gold trades being paper gold trades, and getting back to the US gov't and GS, we now have the "plunge protection team", and you can be certain that the US gov't has black ops, off shore trading run by in house specialists with some activity farmed out to the likes of GS to take action against certain foreign countries central bank decisions via use of derivatives, interest rates, swaps, treasuries etc......if anyone thinks these kinds of tactics are not used in the field of international economic warfare, in the name of protecting national economic interests, they are dreaming in techno colour........tuesday morning, everyone that jumped into gold and gold stocks gets their head handed back to them on a plate...........
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext