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A history of gold manipulation by central banks
derryb
Posts: 36,234 ✭✭✭✭✭
"Sunlight is the best disinfectant" - William O. Douglas
Presented for your reading pleasure. If you care to argue content, do it with the publisher.
Toby Conner recently commented that the next "black swan" will be a dollar crisis. For many here this will be no unexpected shock, our insurance policies remain paid up. I do agree with his opinion that the dollar crisis will make it "impossible for the manipulation in the gold market to continue."
Presented for your reading pleasure. If you care to argue content, do it with the publisher.
Toby Conner recently commented that the next "black swan" will be a dollar crisis. For many here this will be no unexpected shock, our insurance policies remain paid up. I do agree with his opinion that the dollar crisis will make it "impossible for the manipulation in the gold market to continue."
Are they really this stupid, or are they destroying the dollar on purpose?
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Comments
One thing that struck me: all that gold they're talking about buying and selling by the gang of 8 and everyone else... still exists!
It's just different guys in different bowler hats and different handlebar moustaches muttering, "gold, gold, loves me some gold!" while everyone else gets about their business of life
Liberty: Parent of Science & Industry
<< <i>One thing that struck me: all that gold they're talking about buying and selling by the gang of 8 and everyone else... still exists! >>
Yet the price never remains the same since everyone got out of the "pool."
Are they really this stupid, or are they destroying the dollar on purpose?
Ooops..the FIRST link does not work...the second one is fine.... thanks... Cheers, RickO
Are they really this stupid, or are they destroying the dollar on purpose?
the artificial price. If banks are forcing gold lower, investors should buy gold.
<< <i>If someone is manipulating the price of some asset investors should take advantage of
the artificial price. If banks are forcing gold lower, investors should buy gold. >>
Trouble is, we're the last ones to 'know'.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
You know, gold is what it is. It is worth what someone is willing to pay and manipulated or not, that's what someone is willing to pay and that is what physical gold is worth. Unfortunately the value of physical gold (mining cost, marketing, demand) is badly skewed by paper gold (no mining cost) and until paper gold gets some of that sunlight, the value of physical will remain skewed. s4ny's clarity of thought is refreshing. Seems like gold should be worth some amount of fiat but what's fiat worth? Gold is gold and paper is paper.
Party on, Garth.
At least the economy is back on its feet and all is well. Whew, I'm glad we don't have to spend all that time obsessing over the economy now.
I knew it would happen.
Are they really this stupid, or are they destroying the dollar on purpose?
<< <i>If someone is manipulating the price of some asset investors should take advantage of
the artificial price. If banks are forcing gold lower, investors should buy gold. >>
Physical gold has been heading from the West to East for the past 2 years....in large quantities. Hard to say who is manipulating the price down. Could be the Chinese CB in cahoots with the US govt.
The Chinese needed a lot of cheap gold to catch up to Germany and the US. No doubt they have caught Germany now. Next step is catching the US at 8,000 tonnes in reserves.
I don't think it's the US banks forcing the price lower as they are the ones who have taken up large long positions in 2013. The 4 reporting US bullion banks have 4 times as many long gold futures contracts than short ones.
Net long +57,000 contracts. The additional 18 reporting non-US banks (including bullion banks) are net short about 14K contacts. The 22 banks as a group are net long 43K gold futures contracts. So it's possible some foreign
banks could be driving the price down to help out the BRICS in adding to their gold reserves at low prices.
CFTC Bank Participation Report for Dec 2013
Are they really this stupid, or are they destroying the dollar on purpose?
<< <i>"If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin." - President L. Johnson comments when he signed the Coinage Act of 1965 that removed silver from newly minted coins. >>
He was sure wrong about that. Silver coins were the no brainer investment of the century when they still circulated.
<< <i>"If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin." - President L. Johnson comments when he signed the Coinage Act of 1965 that removed silver from newly minted coins. >>
He probably should have said the same thing about gold in 1965 as the G-7 London Gold Pool had plenty of gold available from 1962-1968 to dump on the market to keep the price of gold in check. Unfortunately, they closed
shop when they ran out of easily available gold to sell.