It’s over folks. According to some analysts
recent price swings indicate that the gold and silver run-up will soon be
coming to an end.
Sharp falls in the gold price have prompted some
bears or pessimists to predict it will plunge below $1,000 (£625) an
Goldcore priced bullion at $1,721 or £1,079 per ounce
this morning, compared to yesterday’s fix of $1,788 or £1,121 per
ounce. A spokesman said: “The massacre is attributed to a host of
different reasons – from month end book squaring to Bernanke’s
suggestion that ultra loose monetary policies may
soon come to an end.”
Brian Dennehy of
independent financial advisers (IFAs) Dennehy
Weller commented: “Yet again the ‘safe haven’ myth of
gold has exploded. It went down during intraday trading by about $100.
“This doesn’t mean the bull market has
ended. It just means that when you buy gold you must do so with your eyes
open – it is a highly volatile fringe asset.
“Our technical analysis suggests one of two
possibilities. That the bull run is over and the price will eventually work
its way down into the $700 to $1,000 range – or one final high lies
just ahead before that large correction towards $1,000 will begin.”
The only serious reason given for this recent
volatility and rapid drop in the price of gold is that Fed Chairman Ben
Bernanke promised he wouldn’t engage in more money printing. However,
as is generally the case when discussing capital flows of hundreds of
billions of dollars, things are just a bit more
complicated than that.
It’s no secret that the gold markets are
completely manipulated by large financial institutions and interested parties
within our government that are intent on keeping the price as low and/or
volatile as possible.
What better way to scare the masses away from true
value than to create such extreme price swings in both directions that the
misperception of risk and constant attacks by mainstream media experts
diverts capital from one of the few true safe havens into the fabricated
safety of, say, US dollar backed Treasury bonds? After all, unlike the US
dollar which is backed by the full faith and credit of the United States, gold is
backed by nothing!
For those paying attention, there is a distinct
effort by high level public officials and influential financial leaders to
marginalize the value of gold as a safe haven asset. Ben Bernanke, for
example, in testimony before Congress last year, made it clear that he does not
believe gold is money.
Yet, any time that US dollar hegemony is threatened
anywhere in the world, be it because of gold or oil, the response by
financial institutions and government alike is unmistakable and severe. Sadaam Hussein’s demise is a direct result of his
unwillingness to cooperate. Bernard Von NotHaus was
domestic terrorist and
imprisoned by the Department of Justice for his attempts to introduce a
purely precious metals based system of exchange in the US. And most recently
the Pan Asian Gold Exchange, which promised to level the playing field and
allow for fair global price discovery of precious metals, was curtailed
before it ever had a chance to get off the ground because, as SGT Report details, it “posed an enormous threat to the
existing fractional reserve bullion banks.”
We advised our readers to expect exactly these
It will be an extremely volatile ride going forward,
perhaps to the point where you’ll hate your gold so much
you’ll want to spit on it. But don’t sell unless you’re
sure that global crisis has turned to recovery and growth.
Gold will eventually become the ultimate bubble
– you can bet on it!
Hate Your Gold So Much You’ll Want to Spit On It [July 2010]
So, while we will hear that the gold bubble has
burst, and that gold is a relic of the past, and that the economies of the
world are recovering, remember that we have been told nothing but lies for
decades. Ben Bernanke’s promises to limit monetary intervention mean
absolutely nothing. Remember when he told us that there was no risk of a
bubble in real estate? Or when he said that the collapse of sub-prime
mortgages was contained? Keep that in mind as you take in all of the expert
opinions from or benevolent leaders.
dollars are being stolen as we speak. Governments around the world are collapsing. Instability,
not recovery, is the order of the day. Thus, when the experts make a
promise about something, you can fully expect exactly the opposite.
Yes, there will be volatility in gold, especially if
we see a collapse in Europe, or if the government is able to maintain the
perception of recovery among the masses. But be assured that if gold
collapses, it won’t be alone. Asset price volatility is one of the few
predictions we can make as the global economic, financial and political
systems seize up.
However, unlike most assets, gold and silver have
stood the test of time, especially during economic and political climates
such as that in which we find ourselves today.
Given that we’ve been forced by a debilitated
and collapse-prone global environment to make the choice of where to invest
our time-energy yield (i.e. money), we feel much more confident investing in
commodities that carry no counter-party risk, as opposed to assets denominated
in paper receipts and derivatives of those receipts.
Investments like precious metals, food, personal
energy production, and individual skills development, are the few assets
we’re willing to consider.
Yes, there’s always the possibility of
‘losing’ value in our investment, but at least those assets will
NEVER go to zero.