The price of gold is being fixed, that's why there are shortages
I couldn't find anywhere if this has already been discussed. I've been pretty stumped about why gold is going down but there are shortages. It defies supply and demand. If something is getting cheaper, that means there is a lot of it. If something is getting more expensive, that means it is scarce and people are willing to pay more. This is only happening to gold and silver. There are no oil shortages but the price of oil is going down.
Surely the price of gold must be fixed to lower than its actual value, otherwise we wouldn't be having shortages. Every time governments try to fix prices lower than they actually are, there are shortages.
But how would they even do that? How could the government have control over the price of gold? Wouldn't there be a black market?
Profits: Lost in a sea of control!
Investors hope to generate profit and build wealth by savings yet the government is trying to get us to consume our wealth.
http://www.campaignforliberty.com/blog.php?view=1533
"We will NOT HAVE ANY more crashes in our time."
- John Maynard Keynes in 1927
He should have said: "We will have MANY more crashes in our time" So why do we even honor the theories of a man who was been so wrong.
"why do we even honor the theories of a man
who was been so wrong?"
because governments and central banks love to steal the wealth of nations for their own agendas.
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"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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Just Don't Invest With Monex.com for Investments
Believe me do no not buy any gold or silver from Momex.com.They are all cons. They are dishonest. Brokers Brain Costello and Robert Broderk are trained for you to loose. And any broker who works for Monex.com. There's a new web site Monexfraud.com and I'm sure it grow but I wish it was available when I got in. They (Monex.com )say they will take care of your account then they talk you into the leverage deal then leave you cold. Can't even get a hold of them. When you get an email 3:17 AM for a collateral who are you call. By the time you try to call them they are not there. Cannot get a hold of no one!!!! Then you talk to the lady who looks up your account and your money is gone. They prey on new people who are new looking to invest and promise you they will take care of you. Brain said to me I could make my money grow instead of leaving it in the bank with little interest. Believe me leave it in the bank if you do not want to see it go down the drain with Monex. As Rodger Broderk stated to me was it's call Slip and Slide. And check the reports at Orange County BBB in Calif. they are starting to grow.
December Gold Play!
Here is where I read about the Gold / Futures offset and why December might be a BIG month for Gold..
http://www.gold-eagle.com/editorials_08/willie103008.html
"The question is not who will let me- the question is who will stop me" - Ayn Rand
"The question is not who will let me- the question is who will stop me" - Ayn Rand
Is there a shortage of gold or is there a shortage of ...
gold coins?
Gold coins are really not a reflection of gold, they are a reflection of money.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
More accurately,
there is a shortage of physical gold investment products, like bullion bars and coins. Although it is possible we may start to see a shortage of physical gold and silver in all forms as well beginning next year.
There is still plenty of paper "gold" and "silver," out there. In fact, the markets are saturated with the stuff.
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"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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If you have evidence of that ...
then I would highly recommend that you find a way to buy futures in gold.
The producers are hoarding, therefore the price will go up.
Unless of course it is a fixed game like the OP suggests.
As for me, I recommend being long on gold.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
I wouldn't touch any of the
markets right now. Not since Paulson has set himself up as economy tzar and is willing/able through the TARP legislation and dark liquidity pools to do whatever he and his cronies please to their own benefit.
I will continue to buy and hold physical metals and hoard cash until I feel the time is right to reenter paper assets--if that time is to ever present itself again.
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"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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I will not touch most of what you state but ...
as for the change in the rules ...
you need to adapt and change, or be eaten.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
Naked Shorting...
Large funds can place a "short" on the gold price with NO collateral. In other words they "sell" huge amounts of gold..... that they don't have as it's ALL ON PAPER.... and have to "buy back" on a certain date. This huge selling sends the price down, and then when they have to "cover their shorts" or actually "BUY" they get a good deal. This is going on in HUGE amounts and for THEM it is overlooked! Just give it time... one day they have to cover!
(By the way I am not an expert and may have some details wrong here... but this is how I understand it)
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http://www.youtube.com/watch?v=Y6pAcBXt2j8
"Not armies, not nations, have advanced the race; but here and there, in the course of ages, an individual has stood up and cast his shadow over the world."
Thomas Jefferson: “Indeed, I tremble for my country when I reflect that God is just, that His justice cannot sleep forever."
Viva La Revolucion!
http://www.youtube.com/watch?v=FmaTNf4YhEs
I thought they banned shorting, though?
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"We will never give up. We will never give in." - Dr. Ron Paul
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"We will never give up. We will never give in." - Dr. Ron Paul
Only on certain companies... and only for a short time
But NOT on commodities like precious metals and NOT on Goldman Sachs..... gee, wonder why?
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http://www.youtube.com/watch?v=Y6pAcBXt2j8
"Not armies, not nations, have advanced the race; but here and there, in the course of ages, an individual has stood up and cast his shadow over the world."
Thomas Jefferson: “Indeed, I tremble for my country when I reflect that God is just, that His justice cannot sleep forever."
Viva La Revolucion!
http://www.youtube.com/watch?v=FmaTNf4YhEs
Wait a second
Short selling wouldn't create a shortage of gold though.
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"We will never give up. We will never give in." - Dr. Ron Paul
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"We will never give up. We will never give in." - Dr. Ron Paul
He's talking about the futures markets
While it seems counterintuitive, concentrated shorting on the futures markets does have the effect of creating a shortage on the physical markets--due to the fact that in the short term (before the physical dealers have a chance to adjust their pricing mechanisms) the price is driven down to artificial low levels, creating a higher demand for the gold.
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"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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interesting...
thanks