Remobilize Gold To Save The World Economy!

[kartius919]

Re: Remobilize Gold To Save The World Economy!

The Gold Pool was in the 60's. Clear manipulation by central banks. The 80's through '00 was not deflationary... What are you smoking.

[Charles Mackay]

Re: Remobilize Gold To Save The World Economy!

Ebay is not an accurate reflection of the market... right now you can get eagles under spot, considering a Bing.com rebate on Buy it Now. Auction bidders are misinformed by the inflated rebate Buy it Now prices, so they bid higher.

Here are the numbers. Admittedly the volume is light.

http://goldprice.org/ebay-gold-prices/

[swannmex]

Re: Remobilize Gold To Save The World Economy!

What is it about the following statement that people do not understand ??

July 24, 1998, Federal Reserve Chairman Alan Greenspan, told Congress "central banks stand ready to lease gold in increasing quantities should the price rise."

Is there anything in that statement that is not crystal clear???

If it makes you feel better, let's say the price of gold is "managed" instead of "manipulated" but please don't tell me you have studied the history of gold and you have come to the conclusion that the gold price is set daily by free and fair trading in an open marketplace on a level playing field.

Good grief.

Good luck to all of us.

[nero3]

Re: Remobilize Gold To Save The World Economy!

What is it about the following statement that people do not understand ??

July 24, 1998, Federal Reserve Chairman Alan Greenspan, told Congress "central banks stand ready to lease gold in increasing quantities should the price rise."

Is there anything in that statement that is not crystal clear???

If it makes you feel better, let's say the price of gold is "managed" instead of "manipulated" but please don't tell me you have studied the history of gold and you have come to the conclusion that the gold price is set daily by free and fair trading in an open marketplace on a level playing field.

Good grief.

Good luck to all of us.

The thing is that gold move in tune with certain assets. There is nothing, in the last 10 years that suggest the price is managed. If gold was still at 250 dollars, while every inflationary asset had tripled or quadrupled, then we could talk manipulation.

[nero3]

Re: Remobilize Gold To Save The World Economy!

What is it about the following statement that people do not understand ??

July 24, 1998, Federal Reserve Chairman Alan Greenspan, told Congress "central banks stand ready to lease gold in increasing quantities should the price rise."

Is there anything in that statement that is not crystal clear???

If it makes you feel better, let's say the price of gold is "managed" instead of "manipulated" but please don't tell me you have studied the history of gold and you have come to the conclusion that the gold price is set daily by free and fair trading in an open marketplace on a level playing field.

Good grief.

Good luck to all of us.

The thing is that gold move in tune with certain assets. There is nothing, in the last 10 years that suggest the price is managed. If gold was still at 250 dollars, while every inflationary asset had tripled or quadrupled, then we could talk manipulation. Back in 1971, when there was a stress on the US gold reserves, the situation was a bit like that in the sense that many asset's had moved up, while gold was flat. The US had printed to many dollars. With gold and the money supply, it seems to me that gold was high in 1980, and even discounting a hyperinflation scenario. Then it cooled down, and went in a bear market, as there was a general deflationary trend, lasting to at least 1998, probably 2000. Gold went from overvaluation to undervaluation.

I think some gold bugs look at the money supply from 1980-2000 and fail to understand why gold should go down in the era (as they think central banks printed a lot of money), and blame manipulation. The truth of the case is that all commodities fell in what was a general deflationary trend (combined with paper asset inflation, triggered by this decline in long term interest rates).

In relation to the monetary base in the US, I think there is a theoretical price of gold around 11000 dollars. Before , when the monetary base was 800, I think I calculated the possible price to around 5300, so since it's doubled, I just guess 11000 without having checked it lately. In my opinion, if the hyperinflation scenario is discounted in the market's again, and inflation hit into the 20 % range, it's possible that gold could reach into that range, of course the monetary base could extend further, making the theoretical price much higher, and that there would be impossible to "manage" the price. The reason gold is not already there, is that people believe in the dollar, and don't see hyperinflation right around the corner. As a matter of fact, inflation in the US is no worse than 6 %, while the best case is around 1 % deflation. Hardly a case for high gold to be priced at it's peak potential vs the monetary base.