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Vet67to82 (< 20)

The Gold Manipulation Debate



October 29, 2008 – Comments (2) | RELATED TICKERS: ABX , KGC , GLD

   The is a huge debate going on and accusations flying everywhere about the manipulation of gold and gold prices.  Physical gold is simply unavailable.  There are places to buy a piece here and there but the price is way out of wack compared to the spot price.  Why is that?

   My take is that gold is being manipulated downward, and other than with few exceptions, (India is planning to sell Swiss gold, in gram increments, through its rural post offices) the manipulation is global.   

    Unfortunately, the common sense argument for gold manipulation is this.  There was (is) a global panic that has frozen the credit markets.  The global financial gurus have recognised it's the "Joe Six-packs" and "Mary-Jane hockey-moms" that control the fate of the "financial" planet.  We are the consumers.  The financial cash flow will only get moving again if the consumer doesn't panic. i.e., take money out of the bank and lock it up into gold, which, once it's in their mitts, you'll probably have to pry it from their cold dead hand.  

   ( New bumper sticker:  If you want MY gold, you'll have to pry it from my cold dead hand ! )  

   Cash that goes into gold won't be available to buy anything else.  That's why I believe there is a global effort to force the price down, to confuse the "Joe Six-packs" and "Mary-Jane hockey-moms", that confusion buys time.      


2 Comments – Post Your Own

#1) On October 29, 2008 at 10:10 AM, abitare (30.06) wrote:

Here is a good read on Gold here:

Lessons from Argentina's economic collapse


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#2) On October 29, 2008 at 10:43 AM, socialconscious wrote:

IMHO and after researching the matter I have come to this conclusion. Somewhere at some point spot gold is being manipulated down. You are right physical gold sells at a tremendious premium to spot gold prices. The demand is incredible. ETF GLD has bought tonnes of gold . It is now a record of 773.71 tonnes. Spot gold in Asia is higher then somehow the price goes down in US markets. I digress. Seeking Alpha spells out a scenario where gold is a " carry trade". Draw your own conclusions. All best and again all in IMHO ...SC

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