The manipulation of markets is not exclusive to gold. Stock, bond and currency markets are also manipulated, but there is one difference. Gold’s price is manipulated downward, while stock, bond and currency markets are typically manipulated upward.
When the world’s reserve currency—the US dollar—is at risk of losing its hegemony, it’s virtually assured that governments will intervene in various markets to protect it. Gold is the anti-dollar, because gold threatens the dollar’s hegemony and reserve currency status. A rising gold price is the proverbial canary in a coal mine, signalling trouble for the dollar.
When Will Manipulation End?
The manipulation will end when the physical shortage gets low enough that someone fails to deliver, which will result in a buying panic and gold moving sharply higher. China’s insatiable appetite for physical gold, along with India’s certain resumption of gold buying under the more gold-friendly Modi government, will accelerate this event.
Gold is like insurance in many regards; you have to own it before you need it.
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