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Controlling the Price of PMs

tneigtneig Posts: 1,505 ✭✭✭
in Precious Metals
I know this gets touched on in other threads, but to focus on this one topic more....

"We know they control the price of diamonds (scam), and that if they released them all, the price would bottom out.
How about PMs? How many ways is the price being controlled, and to what extent, and how does that affect investors (me)?"
COA

Comments

  • guitarwesguitarwes Posts: 9,266 ✭✭✭

    To my knowledge you can only use diamonds for 3 things......On sawblades, to keep women happy, and to keep men broke.

    As for PM's, they can be used for multiples of things......one thing is keep some kind of value to something else.
    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
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  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    The same market forces apply. If everyone sold their gold, the price would also bottom.

    But they won't.

    Another consideration is that gold can be verified more easily with fewer concerns about subjectivity in its valuation, which gives it some universal acceptance as an alternative currency.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Diamonds are also less easily obtained and require considerable labor to achieve their full value. The sources (deep mines etc)are tightly controlled, thus enabling manipulation. Cheers, RickO
  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭
    diamond prices are being propped up by DeBeers and others. many people say the opposite is happening with precious metals, that the big governments and banks are basically working to prevent a rapid rise in gold/silver prices.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • DoubleEagle59DoubleEagle59 Posts: 8,307 ✭✭✭✭✭
    Diamonds and gold are controlled in two totally different ways.

    Basically, diamond prices are controlled through a somewhat monopoly based market. Prices are set by De Beers and that's that.

    Gold (or Silver) on the other hand, is price controlled by the massive short selling of contracts on a ratio of 100 paper contracts to 1 actual ounce of Gold.
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • yellowkidyellowkid Posts: 5,486 ✭
    You can buy gold and take it back later in the day and get most of your money back, don't try that with a diamond.
  • bjeffvbjeffv Posts: 13
    As far as I know you can't also make more gold, by using carbon dioxide. So to a certain extent there is no limit (besides carbon being technically the limiting reagent) to the number of diamonds that could be produced.

    A few places are manufacturing diamonds, the thought is to use them in computers as better and more high temperature stable resistors or something. Been too long since I read the article, but eventually this will make computers even smaller and faster as the price comes down.
  • derrybderryb Posts: 36,792 ✭✭✭✭✭
    Greatest marketing slogan ever devised: "a diamond is forever."

    So are false teeth.

    It took a genius to determine that the best way to a man's wallet is through a woman.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Both are controlled by not letting the rest of the world know how much of either is owned by major players. DeBeers probably doesn't have to publish inventories of everything they
    own. The central banks on the other hand have to report to the IMF periodically how much they own. So to make things more difficult, leased CB gold is claimed by both the lessee
    and lessor.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • derrybderryb Posts: 36,792 ✭✭✭✭✭
    Gold Price & Silver Price Manipulation: is it real or not?

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    I have a question... if someone thinks gold is inevitably going to go up, why would they tell the public? about it

    Why don't they just keep the secret to themselves, and keep quietly buying?

    Is it because they need the public to believe it, to make it a self-fulfilling prophecy?

    Follow up question: why do many of these same people predicting higher gold prices have gold for sale?

    You'd think they'd keep it, and sell it for more, later. Unless they need the public to believe gold will go up, so they can sell it now?

    thanks for any insight image

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,792 ✭✭✭✭✭


    << <i>I have a question... if someone thinks gold is inevitably going to go up, why would they tell the public? about it
    Why don't they just keep the secret to themselves, and keep quietly buying?
    Is it because they need the public to believe it, to make it a self-fulfilling prophecy? >>


    If your referring to the public as members of the PM forum the cat is already out of the bag. We choose to share our opinions with fellow believers (and some non-believers). Self-fulfilling prophecy not required; gold is in a long term bull trend. The facts are there whether you open your eyes to them or not. Will it end? sure it will, but not today.



    << <i>Follow up question: why do many of these same people predicting higher gold prices have gold for sale?
    You'd think they'd keep it, and sell it for more, later. Unless they need the public to believe gold will go up, so they can sell it now?
    thanks for any insight image >>



    I believe metals are going up and I sell metals. Thanks to the price controllers there are days to sell and days to buy. I sell them for a profit (especially collector coins) and buy more metal on dips. Buy and hold is one way to make (preserve) money while turning over inventory at the right time and repurchasing at the right time is an even better way to watch the stack grow. Instead of just adding to the stack, let the stack add to itself. My stack grows without adding "new" money. It is because I believe metals are going to continue up that I continue to reinvest in them with the profits. Because I am in a position to now buy large quantity, it pays to cash in at the right time and purchase more at a savings. The key is to have the cash on hand when the buy price presents itself.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • joefrojoefro Posts: 1,872 ✭✭


    << <i>I have a question... if someone thinks gold is inevitably going to go up, why would they tell the public? about it

    Why don't they just keep the secret to themselves, and keep quietly buying? >>



    Because it is better if others believe the same thing. Just like a stock, if everyone thinks it will go down, it has much less chance of going up.

    << <i>

    Is it because they need the public to believe it, to make it a self-fulfilling prophecy?

    Follow up question: why do many of these same people predicting higher gold prices have gold for sale?

    You'd think they'd keep it, and sell it for more, later. Unless they need the public to believe gold will go up, so they can sell it now?

    thanks for any insight image >>



    Things come up, and people need cash. We've all been there.
    Lincoln Cent & Libertad Collector
  • BlackBeardBlackBeard Posts: 1,064 ✭


    << <i>I have a question... if someone thinks gold is inevitably going to go up, why would they tell the public? about it

    Why don't they just keep the secret to themselves, and keep quietly buying?

    Is it because they need the public to believe it, to make it a self-fulfilling prophecy?

    Follow up question: why do many of these same people predicting higher gold prices have gold for sale?

    You'd think they'd keep it, and sell it for more, later. Unless they need the public to believe gold will go up, so they can sell it now?

    thanks for any insight image >>



    They make money on the spread. Buy under spot, sell over. The higher the price, the greater the spread.
    Witty sig line currently under construction. Thank you for your patience.
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