It's a conspiracy - a plot to keep the price down… (Interstoxx, New York)
By K.C. Grainger
New York City - Dec 10 - In 1983, I was working at a brokerage house in New York. One of my clients, an elderly gentleman, worked as an assistant to Jesse Livermore in the 1920s. For those of you who are not familiar with Jesse Livermore, he was considered by many to be the greatest stock trader of all time. I asked my client one day if he thought the markets were manipulated. He looked at me as though I had three heads. "Are you serious ?" he responded, "the markets are always being manipulated." The gold market, in my opinion, is very manipulated.
The demand for gold far exceeds world mine production on an annual basis. Moreover, there is a huge short position that cannot be quantified, but it is believed to be at least 4000 tones - almost twice annual world production.
Now I realize that these factors do not prove that the gold market is artificial, but I believe there is a concerted effort to keep the price down. Why ? Because gold is an alternative investment. If it is gold's turn to rally, it usually means that stocks and bonds are not good investments. If gold is running up in price it usually means that something like inflation or a currency crisis or another economic negative is in the system or coming. If you are the Federal Reserve Bank, do you think that the treasury can issue bonds at 6 1/4% or less if gold is above $320 ? Probably not. Gold at this level would put a great deal of pressure on the bond market. And if there is pressure on the bond market, there is pressure on the stock market. And if there is pressure on the stock market, there is pressure on the economy.
So for these reasons I believe that it is in the best interest of central bankers, brokerage houses, some governments, stock market investors, some hedge funds and many others to keep gold at a low price. Traditional selling, short selling and forced lending are the primary methods of the manipulation plan. I wonder why the Kuwaitis were forced to lend out 79 tones recently? Perhaps to allow central banks to sell short?
Without manipulation, gold should trade around $330 to $350 an ounce. If gold were selling at $400 an ounce, it would probably take the Dow Jones Industrials to around the 6500 to 7500 level. One can keep a price of anything down artificially for long periods of time. But when this manipulation occurs, it means that the price can later have an explosive rally.
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Ja, ja da hört man es wieder;)
Stockbroker, das sagen wir doch schon lange ;)
Ach, das Y2k wird interessant ;)
grüße
daz
By K.C. Grainger
New York City - Dec 10 - In 1983, I was working at a brokerage house in New York. One of my clients, an elderly gentleman, worked as an assistant to Jesse Livermore in the 1920s. For those of you who are not familiar with Jesse Livermore, he was considered by many to be the greatest stock trader of all time. I asked my client one day if he thought the markets were manipulated. He looked at me as though I had three heads. "Are you serious ?" he responded, "the markets are always being manipulated." The gold market, in my opinion, is very manipulated.
The demand for gold far exceeds world mine production on an annual basis. Moreover, there is a huge short position that cannot be quantified, but it is believed to be at least 4000 tones - almost twice annual world production.
Now I realize that these factors do not prove that the gold market is artificial, but I believe there is a concerted effort to keep the price down. Why ? Because gold is an alternative investment. If it is gold's turn to rally, it usually means that stocks and bonds are not good investments. If gold is running up in price it usually means that something like inflation or a currency crisis or another economic negative is in the system or coming. If you are the Federal Reserve Bank, do you think that the treasury can issue bonds at 6 1/4% or less if gold is above $320 ? Probably not. Gold at this level would put a great deal of pressure on the bond market. And if there is pressure on the bond market, there is pressure on the stock market. And if there is pressure on the stock market, there is pressure on the economy.
So for these reasons I believe that it is in the best interest of central bankers, brokerage houses, some governments, stock market investors, some hedge funds and many others to keep gold at a low price. Traditional selling, short selling and forced lending are the primary methods of the manipulation plan. I wonder why the Kuwaitis were forced to lend out 79 tones recently? Perhaps to allow central banks to sell short?
Without manipulation, gold should trade around $330 to $350 an ounce. If gold were selling at $400 an ounce, it would probably take the Dow Jones Industrials to around the 6500 to 7500 level. One can keep a price of anything down artificially for long periods of time. But when this manipulation occurs, it means that the price can later have an explosive rally.
-----
Ja, ja da hört man es wieder;)
Stockbroker, das sagen wir doch schon lange ;)
Ach, das Y2k wird interessant ;)
grüße
daz
