Justification for gold to move substantially higher in price continues to press the boundaries of imagination. In this article we will try to filter the noise in the headlines and also simplify what has been marketed as something much more complex.
case for gold
Gold Market Manipulation And The Federal Reserve
GOLD MARKET MANIPULATION
Some gold bulls have bought in heavily to the argument that gold price suppression has been an ongoing activity for years, even decades. Supposedly, trading in the gold market is manipulated in ways that depress the market price for gold.
Assertions are made that the manipulation takes place in a shroud of secrecy; and the unexpected lower prices for gold, or prices that don’t meet wildly bullish expectations, are cited as evidence of conspiratorial activity.
The claim is made that the price of gold would be much higher if this manipulative trading activity were exposed, acknowledged, and prohibited. But…
Does Demand For Gold Send Its Price Higher?
DOES DEMAND FOR GOLD SEND ITS PRICE HIGHER?
Gold is original money. As such, it is the measure of value for everything else.
Gold was money before the US dollar and other paper currencies. All paper currencies are substitutes for gold, i.e., real money.
So, how much is money worth? Money is worth what you can buy with it. In my article A Loaf Of Bread, A Gallon Of Gas, An Ounce Of Gold, I compared the cost to purchase bread and gasoline over the past one hundred years using US dollars vs. gold.
The article illustrates the single reason that separates gold from all other forms of money: gold is a store of value; nothing else is.