Guest Post: Proof Of Gold Price Suppression

Adrian Douglas, board member of GATA, once again takes a long hard look at the gold market and provides evidence of gold price manipulation. His conclusions: 

• the gold price is suppressed through fractional reserve bullion banking
• the gold market is selling on average 45 ounces of gold for every one ounce of real physical gold via “unallocated gold” (fractional reserve bullion banking). In other words the gold market is backed by only 2.3% gold
• The true price of physical gold is currently around $54,000/oz if fractional reserve bullion banking did not exist. In the presence of fractional reserve banking with 2.3% gold backing the market price of “gold” is reduced to $1200/oz
• The US dollar has a purchasing power that is 45 times over valued
• The way to end gold price suppression is for investors to ensure they have allocated physical bullion preferably held outside of the bullion banking system

The solution? Buy physical - "The sick joke of the Gold cartel is that whether you hold dollars or unallocated gold you only have 2.3% of gold backing! However, the trade of the century is to buy actual physical metal with your dollars, or if you have unallocated gold to demand physical delivery. In this way you can trade something with 2.3% gold backing for an investment that is 100% gold."

Proof Of Gold Price Suppression, Submitted by Adrian Douglas of Market Force Analysis

Comments

[spinone]

Yes, anything we value has no inherent value but through our culture and society.  What do you define as Not Fiat?  Wheat and rice?  Plutonium? Tough stuff to carry and trade with.

Gold has unique properties which has made it the primary store of value for thousands of years among many cultures, especially European ones.  If its a fiat, its a fiat with a long history, much longer than dollar or euros.

[GoldBricker]

And longer than our lifetimes and those of our children, which is the salient criterion.

[Snidley Whipsnae]

"Exclusive: Glen Beck's Golden Advertiser [Goldline] Under Investigation"

I have never delt with Goldline but thought this California investigation of the company based on complaints of customers might give some of us pause before dealing with them.

Complete story at link:  http://abcnews.go.com/Blotter/glenn-beck-fox-hosts-golden-advertiser-goldline-investigation/story?id=11197000

[JLee2027]

Old story from early June.  I guess ABC ran out of conservative bashing ideas.

[Hephasteus]

So what they are saying is that if they go back to something resembling the gold standard at 10:1 fractional reserve gold has to hit $5400 an ounce. Very doable.

[Bluntly Put]

I don't know the way I see it gold is worth $50 an ounce it's face value. Of course that means a $1 FRN isn't worth the paper it's printed on.

[tony bonn]

god bless adrian douglass...the truth shall set you free..and make you rich.

[MrBoompi]

These articles about manipulation are very interesting.  But the fact still remains gold is a chunk of metal that has no more intrinsic value than a piece of paper.  Neither can be eaten.  At least paper can be burned for heat.

Gold should be valued at $54,000/oz?  Sorry, but it just isn't worth that much, and probably never will be unless our incomes increase 54-fold.  Now I'm no expert, but if 50 1-oz Buffalo gold pieces is ever worth $2,700,000, I'll eat my hat.

Like any market, the price rises when people are buying and the price falls when people are selling.  If the owners of physical gold ever decide to sell en masse, the price will plummet. 

I'm all for non-manipulated markets, but faith in a precious metal is no different from faith in paper.   Just like beauty, it's in the eyes of the beholder. 

[Geoff-UK]

All of you optimists thinking we're going to get through this without much pain, and that gold isn't going to have any bearing on the future world economy?

I sincerely hope that you end up being right, and that I have my head deeply up my ass and don't know what I'm talking about.