Normally, one would expect a period of healthy consolidation before gold regains its lost luster since $1,900. But these are anything but normal times. There is little doubt in my mind, in part based on what Alasdair MacLeod from Goldmoney has written and based on many years of documentation by GATA, that the gold markets are manipulated by a handful of powerful bullion banks that not only have endless amounts of paper money on their side to sell these markets short, but they also get taxpayers to bail them out when they screw up and lose money. And as recently observed, these criminals are âtoo big to jail.â Powerful interests on the part of these Wall Street thieves want to continue to con the majority of the worldâs population into buying their con story that a dollar backed by nothing is better than a dollar backed by gold. It is a game that will ultimately end in tears, even for the perpetrators of this crime against the American people. But I remain agnostic with respect to whether or not we will see a sudden snap back as the world begins to understand the fraud of our policymakers and banksters. The establishment will continue to hang on to their scheme of legalized theft as long as they can, which means they will try to talk down or manipulate the price of gold and take it out of the hearts and minds of as many people as possible, for as long as possible. But ultimately, as the Soviet Union proved, markets will prevail. For now, I leave it to the brilliance of others, such as a quant like Charles Nenner who says we are very close to a bottom in gold and James Sinclair who thinks gold is heading to several thousands of dollars per ounce.
Jay Taylor is the host of Turning Hard Times Into Good Times on the VoiceAmerica Business Channel and has been able to more than double his newsletterâs model portfolio from 2000 to the present even as the S&P 500 was in the process of losing 50% of its value! The insights provided to Jay came from a history professor in 1967 who advised Jay that when countries go off a gold or silver standard, hard economic times are sure to follow because nations begin to think they do not need to work hard and save to enjoy a better life. Indeed there is no free lunch and a gold standard reminds people of that every day. Jay watched his professorâs prophetic words come true when in 1971, President Nixon completely detached the dollar from gold. Not surprising to Jay, the price of gold skyrocketed in the late 1970s as inflation wiped out vast amounts of wealth from average Americans. To protect his own wealth Jay began to invest in gold and gold mining shares and in 1981 he began sharing his success and insights in his newsletter. In 1981 Jay began writing a subscription newsletter that has earned his subscribers countless thousands of dollars over the years. Jayâs insights as to the real cause of our problems has enabled him to find investment strategies that work. Diagnose a problem correctly and you have a chance for success. Diagnose a problem incorrectly as the establishment does and you are surail.