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 ounce.
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 labeled a 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 manipulations:
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!
Via: You’ll 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.
Trillions of 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.
Hat tip Jeff Rense