Are Gold and Silver Markets Being Manipulated?

Many people didn’t believe for years that the gold and silver markets in the world were being manipulated. However, given the current economic state and the constant intervention of central banks, it’s quite evident to see that this is happening. The only way these markets are able to be seen as not being manipulated is by believing that they are the only market that isn’t being taken advantage of, because every market is being used by the central banks such as the Federal Reserve for their own benefit. Why are the banks manipulating the price of gold?

Well, for one, the competitiveness of the precious metals influences interest rates for other methods of spending, which typically are preferred to be kept low. There are many investigations and reports that are being made about the use and manipulation of gold and silver in the economy, which makes it hard to know which one is best trusted. However, you must at least understand that the gold and silver prices, supply, and other elements are in fact being controlled by the government.

You can see a clear example of this manipulation in the increasing demand for gold and silver as other investments become less attractive. More and more people are demanding gold, and somehow less is being given out, as the world governments hold out for the big gold rush that appears to be looming in the future. Add to that the fact that the GATA (Gold Anti-Trust Action) committee can’t get the Fed to give up information about the precious metals and the situation that is currently going on with the U.S. gold reserve. Obviously, this is in part due to privacy laws and such, but is still further proof that the government is tugging on the strings of the precious metals markets every single day.

If people were to buy large quantities of gold and stop using currencies for commerce, even on a small scale, drastic things could happen. The collapse of national currencies could have a devastating effect on the world economy and governments will try as hard as they can to keep that from happening. However, with the current economic situation in the United States and abroad, the Federal Reserve and other banking an money controlling entities may not be able to keep a tight reign on the gold and precious metals markets. They very well may set their own level according to market supply, demand and who is investing.

It seems that the state of things is nobody’s business, except for Wall Street. However, it still leaves many people wondering what the deal is with the markets in the end. Many people are concerned by the government’s lack of openness about where their money is going, where markets are being toyed with, and why they are using these markets to their advantage in every way possible.

This creates a lot of misleading answers to questions about the gold supply, the use of gold in the current economy, and even the state of the gold and silver markets and how they will play out over time. Although these markets are typically independent from other economic situations, if they are being manipulated by anyone, they cannot be depended on nearly as much as people might have thought.

However, with the state of the economy and the pace of quick change in today’s volatile markets, gold cannot be manipulated forever. The economy may eventually force the price of gold and silver through the roof as it busts through artificial price controls by the Fed. Do you want to wait until the price of gold skyrockets before you add it to your investment strategy?

Remember, you should always study the market carefully and talk to experts before embarking on any investment ventures.

Alan LeStourgeon owns a Gold Coins website where you can find articles and information on buying and investing in gold bullion and coins.

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