US government Intervening in the Gold Market?
Is the US government was intervening in the gold market? US Rep. Ron Paul asked the Fed’s general counsel, Rep. Alan Grayson SLAMS Alvarez, whether the Fed has ever been involved in the gold market. Alvarez professed to have no expertise in the matter of intervention in the gold market.
Manipulating the price of gold in effect hides the true inflation rate of the dollar. Being a de facto currency, gold has historically been the benchmark to which all currencies are unofficially measured. With the massive quantities of U.S. dollars in circulation, by consistently lowering the value of gold, the banks can hide the gradual inflation that the dollar has been accumulating since the 1970′s. We will have a dear price to pay when all those treasury notes (IOUs) and dollars come back to our country someday.
There is something terribly wrong here. Be safe … buy gold and silver. silver coins
Gold and the Fed
Arizona gold nugget
The Federal Reserve left its target rate for overnight loans between banks in a record-low range between zero and 0.25 percent, and said it will stay “exceptionally low” for an “extended period.”
This means that the opportunity cost of owning gold remains low, the dollar is likely to remain under pressure and inflation may soon rear its ugly head.
Can gold be overpriced right now? Yes, it can. Can gold have much further to go to the upside? Of course. If gold is indeed a bubble, it was the slowest expanding bubble in history. We have yet to have the blow off top where taxi drivers are telling you to buy gold. Herkimer diamonds
China Boosts Gold Investing
Arizona gold nugget
China pushes silver and gold investment to the masses. A report suggests that the Chinese government is pushing the general public into buying gold and silver bullion, which could have a dramatic effect on the markets.
The report notes that China’s Central Television, the main state-owned television company, has run a news program letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying ” China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in.”
What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity.
“Simply put, the Chinese government is trying to trigger a national gold craze…and it’s working. The Chinese public now has gold trading platforms on steroids…. …Also, for the first time in history, Chinese investors can even trade gold abroad (in London) with the swipe of a ‘Lucky Gold’ card. I can’t even get Bank of America to open a foreign currency account.”
If the Chinese are indeed beginning to buy gold and silver as the quoted report suggests then this has to be a strong signal that prices are going to rise, and perhaps rise dramatically, in the relatively near future. We await comment from other China watchers for confirmation of the gold and silver buying spree, but with global gold production at best flat and probably in decline; even a small increase in Chinese buying could have a substantial impact on gold and silver prices.
2 Reasons Gold May Move Higher in September
Nevada gold nugget
1. Jewelry demand in the fourth-quarter averages three times the third-quarter demand, a seasonal pattern that “should remain, irrespective of the actual level” and boost volatilty.
2. Standard Bank also expects the Euro to rise vs. a weakening US Dollar, reaching $1.50 by year-end. Gold priced in Dollars typically moves in the same direction as Eur/USD.
3. Yes, I know the headline says two reasons gold may move higher, but I do have a personal third reason. Our firm just did a major accquisation of Arizona gold nuggets and a Nevada gold nugget that by itself, weighed in at 5.36 onces, that is our largest single nugget purchase ever. So, you see, with this investment, we have been wishing for a +$1,000 an once year-end rally. It would be nice to see our wishes come true!
