|To: ralfph who wrote (183117)||2/15/2016 11:55:12 AM|
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 goals......fast 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...........
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|To: teevee who wrote (183122)||2/15/2016 12:36:09 PM|
|Great points teevee- the only thing I question is " 50 years annual global production" I am not sure that that amount is held, and I doubt it matters much if it is.|
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|To: ralfph who wrote (183117)||2/15/2016 12:55:04 PM|
|This price manipulation story has been going on for more decades than most of us have been alive. But there have been some more memorable moments along the way. Some I recall:|
Nixon decided to end the dollar/gold the convertibility they had agreed to at Bretton Woods. This was the big one. The US was prosecuting simultaneous wars on space, poverty and Vietnam? No nation could ever afford that using real tax generated revenues, and deGaulle called their bluff!
People in 1979-80 Toronto, lining up by the hundreds to buy actual gold from the BNS vaults? Inflation was a real concern, but most folks were just trying to get rich quick!
England sold off most of their remaining bullion in 1999. This is often referred to as Brown's Bottom, since the price went up hard from there.
At a Ron Paul chaired hearing to discuss FED policy, Ron held up a silver coin to make the point about constant buying power vs paper currency. The POG magically dropped $100.
There are surely many others. I was heavily involved in the gold miners for many years and made some amazing money along the way. A personal highlight was on Wheaton River wts which went up several 1000% in one week! This type of price swing action highlights a problem with gold,related equities and entities. Once the instantaneous paper trade became established, the actual metal had to take a back seat (and tons of potential abuse). TV ads that covered it: With this $20, I control $1000 worth of gold!
I do believe the price is controlled, but I'm not sure by who or what. It has been said many times that those who are long gold are short the $USD. They do seem to have the most to lose if gold or something else gains favor. Imagine being able to print fresh cash to pay your Visa bill each month! But some people mention China as a potential manipulator? I think the idea there is to suppress the price to allow for more cheap accumulation.
My personal turning point against precious metals, was a guest response, (David Burrows maybe, 2013-14 area), to a manipulation question. He admitted he didn't know the actual answer, but his advice related to how markets work, or work against you. Paraphrasing from memory, if there was even a remote chance that the theories are true, he would run not walk away from that entire market...
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