The price of gold bullion is blatantly being manipulated as we have seen again this week. It was so obvious by what transpired on Tuesday. On our sites in the past, we have said that without manipulation by the central banks colluding with certain brokerage houses gold would likely never have been below $1300 an ounce during the last four years.

As we have said many times and will say again, “they” cannot tolerate gold selling above $1300 in US dollars. They also seem to think that the investing world is ignorant of their schemes. Tuesday morning, 27,000 gold contracts were sold on the commodity exchange. The gold futures contracts were not sold prudently with limit orders but rather seemed to be just dumped to create weakness in the market. Some people might think that it was a “put up job” to say the least. The sales were done by paper contracts and not real bullion but it did its job of creating weakness in gold bullion. They want to suppress the price of gold.

Central bankers know that they cannot have government bonds yielding only in the 1% to 2% range if gold is running up so they impede the normal movement of gold. We should note that at any time gold bullion is being hit down and is “on sale,” the Chinese are more than happy to buy whatever is available. Other astute buyers include Russia and India.

In our opinion, the purpose of Tuesday’s sale was to create the appearance that gold is not an alternative to protect one from government’s fiscal irresponsibility but merely a dead asset class. They also try to cover up the fact that the world is awash in more debt than can be handled while running huge deficits. The US is running a deficit of approximately $1,500,000,000 per day. 

Bankers and brokerages know quite well that if there is a bull market in gold, at the same time it is difficult to have a bull market in industrial stocks. Thus they keep the price of the gold bullion down by any means necessary. While engaging in this manipulation, they badly damage the world mining industry, hundreds of companies and devastate the economies of many countries.

                                               Let’s finish with this final comment

“You can fool some of the people all of the time and you can fool all of the people some of the time, but you can’t fool all of the people all of the time.”    Abraham Lincoln, US President, 1861-1865