What single reason for imaginary or real that "forces" want gold low?

Discussion in 'Markets & Economies' started by Ipv6Ready, Dec 4, 2016.

  1. Peter

    Peter Well-Known Member

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    If gold is of unstable value, people won't want to return to the gold standard .
    Then you can print as much as you like.
    Like Nixon did for his war
    If gold is allowed to go up, people might buy gold instead of banking for no interest, or investing is uncertain stocks, or
    buying vastly overpriced houses.
    Its simple really.
     
  2. betterlatethannever

    betterlatethannever New Member

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    What benefit - Plenty - Power - Power - and more Power to do as they please leading 99.99% of the worlds population up the creek as is exactly happening today :/

    Yes we won't know "who" but that don't really matter because the result will be the same.

    Gold is like the canary in the coal mine revealing the iron fist grip and ultimate control in well everything,but still - Own Gold :)
     
  3. Pirocco

    Pirocco Well-Known Member

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    2000 279.11
    2001 271.04
    2002 309.73
    2003 363.38
    2004 409.72
    2005 444.74
    2006 603.46
    2007 695.39
    2008 871.96
    2009 972.35
    2010 1224.53
    2011 1571.52
    2012 1668.98
    2013 1411.23
    2014 1266.40
    2015 1160.06
    2016Q1 1177.29

    2016 price is 4 times 2000 price.
    gold price low?

    The "cartel" wants gold high when speculators are buying it, and low when speculators are selling it.
    Reason obvious.
     
  4. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    My understanding of economics fundamentals tells me you are correct.
    As for my understanding of PM the players are skimming of the top and bottom and are not setting nor influencing price to any significant degree. Ie they are adding front running and adding few cents to billion of trades.

    Hence why this thought that prices are kept low, it's not even that rare, ie anyone who wants to buy it can. ie pumper continually report shortages in supply but for a given price anyone and everyone can buy. So it's not a shortage.
     
  5. Pirocco

    Pirocco Well-Known Member

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    The gold market has some people / organisations active on it.
    The gold price changes are based on their changing supply/demand to/from the market.
    One could classify these people / organisations.
    1) savers / speculators (alike us stackers, no matter big or small)
    2) trading intermediaries alike bullion dealers
    3) bullion banks
    4) national / central banks

    3) and 4) are obviously "together".
    2) tries to avoid being sold high to / bought low from, which is the hedging (futures market) - wants to chew out a profit from the trading.

    Now imagine that class 1) would be very small alike you claim. In the end, any gained dollar has to come from somewhere / someone.
    If that was the case, then 2-3-4 would form a zero sum market, alike wolves only having other wolves to eat.
    So, 2-4) are smarter than this. They throttle their gold market activity based on class 1) 's activity.
    And I found proof for that: I compared supply/demand (including futures) of 2 subsequent years, and the typical class 1) gold product forms were about equally (quite accurate) sized (expressed as ounces) as the 2-4) classes.
    Seen from aboves strategy, that is perfectly what to expect.

    If they would put 10 times as much dollars as speculators put, then this would clearly alarm speculators. Just like one sheep in the middle of a dozen wolves would be more alarmed than 5 sheeps would be with 5 wolves around.
    It's all about... strategy, and central banks and others in those 2-4) aren't as stupid as some claim. Rather the contrary. It's the fundamental of their macro economical inflation policy: to control general price risings by wiping out the bank savings from 1) in time (in time = allowing them to continue their fiatmoney creation based frontrun-spending. Destruction following creation without too much lag.
     

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