The media has made much of the news that the price of gold has just experienced its biggest fall in over 30 years. The price of silver has experienced a similarly dramatic decline, to which we can add falls in oil, copper and other commodities.
Talking heads have been emerging from the woodwork since gold and silver started turning south in recent weeks, spouting the establishment’s nonsense that gold is finished, it isn’t a safe haven, its collapse proves the government can print money without consequences for the wider economy etc, etc.
But what we have seen in recent days is a classic bankster raid as part of a governmental war on alternatives to the dollar. Doing the Federal Reserve’s bidding, the investment banks and big institutions took advantage of a modest decline in gold and silver prices over recent months to attack the market. The dollar must be preserved at all costs, so the US government’s financial industry puppets have stepped up to use Fantasy Commodity paper to
After Goldman Sachs last week advised clients to close their gold positions (‘paper’ gold futures), on Friday the dealing team at Merrill Lynch apparently dumped a futures sell order of around 4 million ounces or 124.4 tonnes of gold, worth approximately $6bn. Ironically this is the same Merrill Lynch that in September last year said it could see gold soaring in price to $2400 per troy ounce by the end of 2014.
You can be sure Merrill – and Goldman Sachs – still believes gold’s price will soar, which will explain their physical gold buying. This market manipulation through worthless paper to drive down the price serves to enable the likes of Goldman and Merrill to buy up much larger quantities of gold in anticipation of the longer term price rise, while persuading their dozy investors to part with the illusion of owning gold and pump their money where the US government wants it – into equities and US bonds.
‘The scale of the selling was massive and again underlines how one or two large banks or hedge funds can completely distort the market by aggressive, concentrated leveraged short positions,’ wrote the Got Gold Report. It’s clear the markets have become so badly corrupted it is now common to see billions of dollars wiped off the value of a commodity by way of a paper exercise.
Thankfully there are still people who have their wits about them and have been seizing the opportunity to buy gold and silver at a lower price. They can see the unchanged financial fundamentals that make gold a safe haven, namely:
- spiralling national debt becoming increasingly difficult to service
- huge inflationary pressures waiting to burst into the open as a result of reckless printing of money
- an overpriced stock market ripe for a crash where share prices have inflated because of the increase in the money supply
- interest rates that will eventually break out from the efforts to hold them down
- additional tax hikes to fill the gap between receipts and ever growing public spending
- governments that have quietly changed the law to enable confiscation of bank deposits at arbitrary levels
When one sets aside the fantasy paper trading of the banksters that has given the media and uninformed people the idea that gold and silver have lost their value, and instead looks at the real, physical market, one will see quite a different story…
When the economic effects of government policy kick in – and they will despite the lengths to which they are going to suppress the consequences of their actions – all that ‘smart money’ that is diving out of worthless paper gold and silver at the current low price following the advice of Goldman and Merrill will be looking for a safe haven. They will want to get into physical gold and they will find the price rising, low supply, and the people who advised them to get out of gold sitting atop of a huge pile of the real stuff in high security vaults, bought cheaply by way of a grotesque manipulation of the market.
My tuppence worth of advice is don’t wait for the lumpen herd, get in now and protect some of your wealth from the economic mess that is coming over the hill and set to hit all of us head on.