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How the Gold Price Manipulation is Panning Out
By admin | October 23, 2008
Bloomberg reports that Zuercher Kantonalbank, who run a Swiss market Gold ETF say “Demand is so strong,” Susanne Toren, a metals analyst at the bank, said by telephone from Zurich today. “Our vaults are full right up to the top.” Apparently they are holding about $2.25 billion worth of gold at today’s prices in that one bank!
Yet, the price of gold continues to fall. It’s down to $750.
I don’t pretend to know what is going on here, but something is fishy. All around I see reports of record buying of gold by investors that continue to scurry it away as a safe haven, to protect against fiat money destruction. (To sidetrack on to that for a moment, did you see that Warren Buffet says the current bailot will create inflationary pressures on the dollar?)
The South African (Krugerrand) Refinery is sold out. The US mint is sold out. Jim Puplava said last week he ordered a ton of silver and was told 12 weeks for delivery… the delivery date keeps getting pushed out to 14 and 16 weeks. This makes no sense at all. The price of gold and silver is definitely being manipulated. This is worse than I thought!
The solution I see is not to get too stressed about all this, but instead concentrate on creating wealth the old fashioned way … through hard work instead of speculation. I’ll be writing a series of articles on this topic for Q Wealth Report. Of course, we will continue to provide coverage on gold which remains one of favorite investments, provided you buy and hold physical gold rather than paper gold, certificates or digital gold.
Further reading: Check my article How to Buy Physical Gold and Why Not to Invest in Gold ETFs over at ezinearticles or my Squidoo page called “Buy Gold Offshore” for more!
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Topics: Currencies and Cash | No Comments »
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