The time has come when “They” can no longer suppress the price of gold and other precious metals, which is why gold is set to explode to over $2000/oz and possibly higher. Read on to find out who “They” are and why “They” will soon be out of the manipulation business.
For many years the price of gold has been kept from rising to its true value. The reason for this manipulation is to cover for the poor management of the U.S. dollar and keep it looking strong, because, if the dollar looks weak, other countries in the world will no longer put their currency reserves into dollar based investments. They will choose to invest in gold, silver and investments backed by other currencies such as the Euro.
The players in this game of manipulation are the central banks who hold much of the gold bullion, the U.S. Federal Reserve, the U.S. Treasury and the bullion banks which consist of any investment house who buys and sells, or leases gold.
The basic process has been, the central banks decide what they want the price of gold to be and the bullion banks carry out their orders.
But things are beginning to unravel for those players and we are nearing a point in time where they can no longer continue to suppress the prices of gold and other precious metals.
So, let’s take a look at what has changed in this game of manipulation.
First, many of the participants are the very same ones you are reading about in the recent financial headlines. You know, the ones that are scrambling to fix the mess they have gotten into.
This mess, or crisis as the government refers to, has created a level of fear among investors who are now turning to gold and other precious metals as a safe haven. Also, many other countries such as China are transferring their currency reserves from U.S. dollar based investments into gold, due to the falling dollar values. This will cause an even bigger challenge for those financial institutions who count on that money to flow to them.
In turn, major industry who counts on short term capital loans to help their cash flow will have trouble obtaining those needed funds from the financial institutions. The result, other sectors such as manufacturing will be also affected.
Once this financial crisis expands to even more financial institutions, and carries over to other sectors, stocks will fall and even more investors will be turning to gold.
So, how will this have an effect on gold prices?
The big shift to gold will cause the supply to drop and the demand to increase. We all know the result of low supply and high demand, the price goes up.
There will come a point when “they” will no longer be able to suppress the price of gold because of the overwhelming demand. That is when we’ll see the price of gold rise to its true value, most likely $2000/oz or higher.