PhD Economist and Dean of Business School: Gold Prices Manipulated

James Conrad is a PhD economist, professor emeritus of economics and former Dean of the University of Indianapolis School of Business.

Yesterday, Conrad said that the gold market is manipulated. Specifically, he begins an essay on the gold market by pointing out:

There is no other leveraged commodity market where short sellers increase their positions, materially, as the price rises, and increase them even more when prices are exploding, except gold and silver. The reason traders don’t normally do that is that it exposes short sellers to unlimited liability and risk. Yet, in both March and July 2008, and on countless occasions over the past 21 years, vast numbers of new gold and silver short positions were temporarily opened up, with the position holders seemingly unconcerned about the fact that precious metals had just risen exponentially, and that there was a very real potential they would bankrupt themselves with unlimited upside potential. Normal traders would not expose themselves to such unlimited risks.

I conclude, therefore, that over the last 21 years or so, “fake” precious metals supply in the form of promises of future delivery have habitually been increased when prices increase until increased “supply” managed to overwhelm increased demand, leading to a temporary price collapse.

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  • The Grey Tiger

    One little bit of comfort is the fact that the Bushie’s have not been able to handle or understand any program or problem they have addressed. Why would they be able to pull off the destruction of the dollar by some calculated program now.I thought they had already destroyed the dollar and the world economy already. They are incompetent and brain dead and always late.Chicago School economics has finally exposed itself to be the fraud some of us knew it to be.

  • Kerux

    Grey Tiger’s mistake is he thinks Bushes’ admin doesn’t know what they are doing – they know exactly what they are doing.

  • Rabbit

    You are both making the mistake of assuming “Bushie’s admin” is controlling anything. This is way over the head of the puppet US government, this is the banksters, the elite, the big old reptiles again.

  • CottonEyeJoe

    The Jews come in to the country, change the monetary system from gold to paper, they steal all the gold (or else steal the money and exchange it for gold as in the Madoff case), then they crash the system(by stealing even more money)so that WE revert back to the gold standard. Now they have all the gold. TADAAAA!

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