10 Aug 2016

The Case For Gold Gets Stronger


By now it's no secret that the Comex market is basically bogus.  It's a paper contracts markets settled in cash, almost never in delivered gold. It's been the mainstay of an arsenal of available weapons that interested parties can use to manipulate the gold price, here is my post from a year ago on the subject:
http://dwahts.blogspot.co.za/2015/09/how-is-price-of-physical-gold-being.html

I would like to expand on this a bit, because here is a link from Zero Hedge that explores the theme further:
http://www.zerohedge.com/news/2016-08-09/charade-continues-london-gold-and-silver-markets-set-even-more-paper-trading

For a few years now I've been writing posts on a variety of different aspects of the gold price being manipulated, not just by market sculpting entities, not just because gold is a "safe-haven" investment in turbulent times (a superficial analysis which I hate because it cheapens the whole issue) but also by central banks that have have a vested interest in the inverse relationship between gold and fiat currency.  This is a key element that I often discuss because there are geopolitical (not just market) indicators we need to be following, and I don't see enough emphasis on this (obviously) by the talking head puppets on Bloomberg or MSNBC.



The key geopolitical factor is the icing over of relations between BRICS nations and the West, particularly Russia and China.  Those nations have been on an absolute gold buying binge.

Why?

As it turns out they may be buying substantially more than we actually realize.  See Here:
http://www.zerohedge.com/news/2016-08-09/australia-customs-department-confirms-bullionstar%E2%80%99s-analysis-gold-export-china

 I think it would not be unfair to accuse someone looking exclusively backwards at charts and trends (not looking forward in the real world) of having their heads in the sand.