Gold And Silver Holdings Of Trusts And Funds - Price Manipulation

Dangerous leverage in the gold markets seems to be pressing the ready supply of physical gold, even prompting withdrawals and redemptions from the trusts and funds on relatively small price swings, as opposed to the silver market where supply is adequate.

If there is a dislocation in the physical gold market, which some have suggested as a possible outcome, then res ipsa loquitur. 'the thing speaks for itself'.  

There should be little surprise or debate with regard to the negligence of the regulators of the markets and those engaging in price manipulation including the Fed, the SEC, and the CFTC.  

The market price manipulators have been too long free to act with near impunity, much as Bernie Madoff had been able to do before his own price manipulation scheme toppled over, with the regulators and the banks turning a blind eye to systematic fraud.

 

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Power Hedge 5 years ago Contributor's comment

Sooner or later, the ability of the Fed and others to manipulate the market via paper gold will go away. Somebody will try to take physical delivery and there won't be any gold to deliver. That's when the price will ultimately explode upward.

Alexis Renault 5 years ago Member's comment

Wow, when do you suppose that will happen and what would trigger something like that?

Power Hedge 4 years ago Contributor's comment

Well, from what I understand, the German central bank had to wait a few years to return its gold. Russia and most more hostile countries seem to be demanding the gold be delivered immediately and they aren't willing to put it with the Fed.

I'm not sure. My guess is that at some time, Europe and Asia will lose faith in the USA and demand all their gold back right away causing a run on the Federal Reserve. Maybe this coronavirus scare will do it or maybe it'll take something more serious like a war breaking out.

Alexis Renault 4 years ago Member's comment

Wow, thanks for responding. I forgot all about this. Looks like I asked that question about a year ago!

Power Hedge 4 years ago Contributor's comment

I haven't been as active on this site as I should be and I need to change that.