Gold Manipulation Is Out In the Open

How Long Can It Continue?

We’ve noted for years – for example here, here and here– that gold prices are manipulation.

We pointed out in January and February that gold manipulation is going mainstream.

At least one giant bank has been fined for manipulating gold prices. And see Caught Red-Handed: This Is What Zoomed In Gold Manipulation Looks Like.

And public television channel 3sat – broadcast throughout Europe, and especially popular in Germany, Austria and Switzerland – addressed the issue head on:

Jim Rickards was asked how long the gold manipulation could continue now that the cat is out of the bag. He basically answered: until the physical shortage of gold leads to a large buy order not being filled; especially given the demand shock coming from China and India:

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  • Not sure abot this Rickard guy. Central Bank swaps were reported about before Dodd-Frank was ever introduced .

  • Dee

    I just don’t see the problem.. so, gold is manipulated, why is that a problem? You get government involved and monkey with the prices , you set up a dynamic that will eventually correct any mispricing. Just like a housing bubble will collapse when the government twists the free market rules of credit , or a currency will eventually go into inflation if you print too much.. all this is even more true for gold.. gold is priced on the international market, the whole world has a hand in correcting the market when push comes to shove, nobody that is buying gold is complaining about low prices .. China knows this.. with the west trying to manipulate the price of gold down and pricing it artificially low, China is buying at bargain rates, so am I, and so is anybody who believes the price of gold is being manipulated down below fair free market prices in order to artificially prop up failing ( or facing inevitable inflation) western currencies. Silver is the same way.
    There is always enough of anything at the right price. Gold has always had a relatively high price, and it is indestructible , it doesn’t corrode or rust, about the best you can do to take gold off the market is lose a treasure ship at sea .. but gold is worth enough that folks will go find it, right now gold is used in such small amounts in electrical gadgets, it isn’t economical to recover or recycle it from stuff like cell phones ( which is actually kind of a first, in the past gold has always been recycled and it has always been worth recycling and recovering) so a small amount at current prices is actually being removed from the market.. but if the demand goes up it could become economical to recover even the 3 parts per trillion in seawater at a high enough price ( not likely any time soon, baring the invention of some new technology) .. if the price goes up enough. Silver is similar but it’s price is so low that little actually gets recycled out of all the industrial applications .. I mean who is going to pick thru all the discarded and lost socks in the world that have silver in them to kill foot odor , the amount of silver is miniscule .. solar panels have quite a bit of silver , but at current prices , still not worth the trouble.. silver is critical in thing like wheel bearing alloys , silver is the most lubricating of metals , the most reflective, the most conductive electrically .. it is antibacterial and antiseptic .. but not really recyclable at current prices ..
    Consequently while there is about 3/4th a troy ounce of gold per person on the planet, there is only about 1/6 a troy ounce of silver above ground , already mined, and available to buy and sell per person on the planet.. and silver has a much bigger industrial market. Very little gold is out there that is currently beyond economic recovery .. tons of silver, however, are out there, and should silver ever go up sharply, the supply could be increased buy folks recovering silver from such industrial sources .. but only at a price that makes economic sense.. same as for gold, but gold is already pretty close to that price.. yeah the government has manipulated the price of both down.. gold has always got more attention that silver.. Gold has been manipulated down to where mines have had to shut down and reduce production to only high enough grade ores to make economic sense to mine and process..
    So again, what is the problem with the government manipulating prices down? Gold ( and silver) are on sale.. the Chinese see it.. anybody that wants to, can buy gold and silver.. I don’t recommend it unless you take some time to learn something about precious metals as an investment, or gold coins if you are into collecting coins or sterling silver tea pots and serving ware if you are into antiques .. I mean you have to know the in’s and out’s of anything you invest in, other wise it is easy to get burned .. But folks who know and study this stuff know it is manipulated , know the prices are artificially low, and are buying gold and silver.. ( not investing all their money , be sensible, diversify, 5% maybe 10% after you do some due diligence and learn about the in’s and out’s.. Folks get all detail oriented when they buy a gold and diamond engagement or wedding ring .. that is a good model to follow , but jewelry is typically around 4 times the base price of the metal in it.. not counting precious stones .. I don’t know squat about stones.. so buying gold jewelry at retail and hoping to recycle it at spot metal prices doesn’t make any sense at all .. but if you know jewelry, how to buy low and sell high, like anything art related .. there is an investment possibility in there somewhere.. not my game.
    But yeah governments manipulate the price of gold and silver downwards to prop up over printed currencies DUH! Why is that a problem , makes gold and silver cheaper to buy for those who care to invest a little as a hedge incase of inflation or the collapse of crony capitalism or welfare state socialism or any kind of government mismanagement of any kind of economic model ..
    Personally I say thank you to the manipulators for the low price, and buy as part of my balanced portfolio.. I mean geeze louise , it is the least corrupt governments can do for the people, seeing as how they are ruining the everyday currencies and the economy.

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  • DorothyPalmer

    Gold manipulation is occurring to protect the US dollar. All it will do is buy time before the dollar and the US both crash into non-existence. It is only a matter of time.

    • Dee

      sounds like a good reason to buy some gold, or silver.. I have a Athenian 3 Drachm from about 450 BC, The City State is gone and crashed, so has the civilization itself, The Gods are all just memories now, and the Leader Is dead.. The silver is still good, worth it’s weight just about any place on earth.