Thursday, April 23, 2009
Looking for Gold
Something I have been contemplating on fore some while now is why the price of gold haven’t gone up much more? There are several rumors floating around about IMF selling gold and some people wants to see if Fort Knox still has gold in it. And if some of those conspiracy theories are right that might keep prices down since the amount of gold on the market increases, but it still doesn’t feel right. Since I know, which most of you out there don’t, that this crisis is astonishingly bigger than anything you can imagine the prices of gold should go up much more than it does. Why isn’t? Anyone have the answer? I’m going to figure this little mystery out…
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The only thing that can really supress gold prices right now would be stealthy sell-offs. During good times, I think fancy schemes by large actors can act in ways to artificially supress the prices without actually having to sell-off a lot of gold, but right now I don't think that would do the trick.
ReplyDeleteEither,
a ) Fort Know is being emptied
b ) IMF has already started selling off
c ) Someone has discovered an enormous gold mine and not told the world (the Russians?)
d ) What we're seeing is the "backdraft" before the wave, sort of like that during a tsunami when the shoreline suddenly moves a kilometer out to sea to build up the enormous wave that is moving towards land. This might (although I admit the logic is sketchy at best) occur due to the climb in gold prices last year, and when the move turned slightly downwards the market was manipulated (again by a scheme of sells/purchases) to the maximum extent by some big actor that is now doing its best to keep it back. But again, this would probably require huge selloffs.
e ) Someone is pushing prices up on something else, for instance maybe asian nations are making stealthy purchases of assets worldwide, which pushes prices on those up, creating maybe a certain stock rally as of lately, which means that some people may be stupid enough to sell off some gold and purchase stocks.
All this is still a bit to conspiratory for me though, my guess is that people are still stupid enough to not see the forest for all the trees, and thus people are still playing the stocks&bond game because they think that maybe things are turning around just enough for them to make a "quick profit".