Comments on: Prediction: Gold and Silver Will Enjoy Price Spikes by the End of July

By: Sir James

Sir James — Sun, 11 Jul 2010 05:59:39 +0000

I have difficulty with the fact that so many do not discuss, perhaps because they do not recognize, that gold/silver have been converted to paper in a number of forms (collateralized)to facilitate manipulation plus leveraging. Bullion is more difficult to fiddle – especially if one accepts the fact that gold and silver are money, not commodities – but it happens. Once converted to paper, any doge is simple.

If gold is irrelevant, why did Nixon take the USD off the gold standard in the 70′s. Anyone who watches the Kitco charts daily and especially when the shorts are due can see the manipulation plainly in real time. Why? Because gold/silver are not copper or pork bellies; they are different.

A reverse or inverse relation to the USD was maintained for quite some time in NY, and the LBMA hit a bullion shortage within the last year that saw them pay full value plus 25% in cash when bullion was unavailable or deliveries of full amounts in bullion plus 25% cash penalties for late delivery.

It was common knowledge – and understandable after Dubai and the Chinese had pulled their bullion and put it in their own vaults. Now the gold price seems to run with the USD, but it is kept within a bank by the Feds bank – for a fee with all losses covered. High gold is a perceived threat to any fiat currency, but especially the world reserve. The US will not relinquish reserve status easily. But, as you know the pressure is on.

With rejection of the IMF suggestion for a new fiat reserve, it seems that, eventually, we will again have an asset backed reserve – gold, silver oil and perhaps other commodities. Consider the panic in the EU and Japan in recent months – the spot price hardly moved. One economist called it inelasticity of demand on price. It was. But why?

There are two possibilities….neither of them speaks well of the powers that be and both point out that we the people are price3 takers, not makers. Surely you don’t think these things accidental or spontaneous?

By: bob smith

bob smith — Fri, 02 Jul 2010 22:47:09 +0000

Considering the massive quantity of debt instruments floating around the globe, aka paper money, in relation to the above ground supply of silver and gold, the price suppression and manipulation schemes are wildly successful it seems to me.

By: marc

marc — Sun, 20 Jun 2010 14:49:40 +0000

I paid 5 dollars for a bucket of strawberries last year,
This year same place same time same bucket, 7 dollars. 40% increase
therefore if strawberries can increase 40 per cent in price the S&P 500
will too by the end of the year, of course.
my position : call 1375 dec sp 500 at $1.20/contracts. + my long shots calls on silver and gold. gold $2010 silver $28 before dec.
Maybe one of the best year ever!

By: Radwriter

Radwriter — Wed, 16 Jun 2010 08:49:38 +0000

The Afghani mineral deposits are nothing really new. It has been reported for decades. This from an AP story:

“Geologists have known for decades that Afghanistan has mineral wealth, but a U.S. Department of Defense briefing this week put a startling price tag on the country’s reserves of iron, copper, cobalt, gold and other prized minerals: at least $908 billion.”

It just keeps getting dropped from the radar because no one has been able to come up with a workable business plan to go develop it.

By: Charles Savoie

Charles Savoie — Tue, 15 Jun 2010 06:17:14 +0000

But watch for the Silver Users Association to announce regarding the $1 trillion minerals bonanza just announced by the U.S. military in Afghanistan, “huge silver deposits near surface minable at .48 cents per ounce to flood world markets by spring 2011″ OR some such wishful misdirection. Chapman said recently there would be a major lawsuit against JPMorganChase re silver depressive tactics. Only time will tell if he heard right. In the wake of the 1980 silver crash, the “Free Market Compensation Group” sued for $51 million in damages and to my knowledge, got nowhere, though one silver long is known to have gone BLIND due to stress! Friends, “sell no silver for under $500 per gram!” starve out the SUA. If Obama does an August 9, 1934, throw your silver away or fight it on Capitol Hill and in the courts.

By: Radwriter

Radwriter — Mon, 14 Jun 2010 23:36:34 +0000

Pat,

I’d like to throw out a point about price manipulation. If the govt. is trying to protect the value of the dollar by manipulating the price of gold, it seems to me that they have picked a pretty poor way to do it. It seems that the value of the dollar is much more directly related to the price of other commodities. (That also raises the question of whether the commodity price determines the dollar value or the dollar value determines the commodity price?) Gold prices may be manipulated, but frankly, the impact on the dollar over the long haul seems to be pretty erratic and insubstantial. It seems as though they have other tools or influences available that would be far more direct and effective.