Friday, October 8, 2010

The Golden Gift – A Modern Solution to an Unsound Global Monetary System Gold & Silver: This Time it IS Different


From SmartknowledgeU:

With gold and silver bulls, since the beginning of this new PM bull in 2001, the four dreaded words that every gold/silver bull has been reluctant to say because it has served as the kiss of death every time gold/silver has been on the verge of a seemingly enormous breakout, is “This time is different.”

Yet this time IS different and here’s why. At the rate of currency devaluation being inflicted upon the world’s major currencies today by Central Bankers there are, and there will be, no real gains in any of the world’s leading stock markets. As every gold bull reader is aware of, if you price the world’s leading stock markets in gold, all Western government/banker engineered rises in stock markets are exposed for what they are – illusory gains, not real gains. Real gains for the last two months in most Western stock markets when priced in gold are firmly negative. The rigged rises in Western stock markets have been nothing more than shenanigans designed to fool the people into buying the economic recovery fable that bankers/politicians so desperately are attempting to sell, especially in the US, where November mid-term elections loom. For example, price the S&P 500 index in gold since early August, and one will discover that the S&P 500 has dropped more than 9.3%. Price the S&P 500 in silver and the losses are even more marked, at nearly 20%.

While is true that gold/silver are heavily overbought now and PM stocks are either in heavily overbought territory or rapidly approaching heavily overbought territory, during strong runs in past gold/silver bulls, the underlying metal prices and stock prices can remain in overbought territory for months on end. This alone is not a reason for a correction as Central Bankers have been fighting the fundamental weaknesses in their fraudulent global monetary system daily for quite some time now. When bankers legalize fraud through the legislation they sponsor/endorse, technical analysis is insufficient to ascertain the short-term direction of not only stock markets but also gold/silver markets. One must understand the history of Central Banker engineered attacks and price suppression schemes against gold and silver to estimate the probabilities of short-term corrections in addition to the use of technical analysis.

Today, Central Bankers are increasingly having a more and more difficult time suppressing the price of gold and silver. This is a marked departure from years past, even as recently as 2008, when they engineered a gold/silver crash to coincide with their engineered stock market crash. Though they still have the power to engineer short-term corrections in gold/silver markets, their power to do so has been fading this past year. They must resort to more and more trickery to engineer these collapses. If they decide to engineer a strong rapid decline in major US indexes in the near future, you can be sure that they will use this event to also use all of their abilities to engineer a simultaneous sell-off in gold and silver. Still, any correction we receive in gold/silver markets before the end of the year will be likely to be very short-lived as various global players will step in, stop the decline with buying, and continue the rising trend in gold/silver prices. In any event, the fading influence of the Bank of England and the US Federal Reserve over gold/silver markets has happened for a number of reasons.

Western Central Banks, specifically the US Federal Reserve, very likely possess much less gold than their “official numbers” indicate. Though the US Federal Reserve only owns paper certificates, these gold certificates give them ownership of the gold reserves at Fort Knox. The Fed’s price suppression schemes against gold and silver over the past several decades have involved leasing gold to bullion banks, who then sold the bullion into the market. Much of this gold has never been returned to the official US gold reserves. During periods when the Fed was known to be leasing gold via the cooperation of bullion banks, the reported US gold reserve numbers never changed, revealing the official numbers to be a total fraud. This, among numerous other instances of verifiable and exposed lies regarding the Federal Reserve statements regarding their official gold reserve figure, is why I am quite confident that the Fed currently owns much less physical gold than they claim. Selling physical gold into the market through leased gold to bullion banks was one of the most important mechanisms that the Fed used to suppress the price of gold and silver. With the efficacy of this mechanism largely gone as well as the desire of Central Bankers to sell gold almost non-existent, supply/demand dynamics for physical gold and silver are extremely different than they were just a mere five years ago. For a comprehensive list of acknowledged and proven US Federal Reserve gold price suppression schemes, visit this very well-researched GATA article, linked here, titled “Gold Price Suppression is Public Record and Public Policy, Not Conspiracy Theory”.........read on

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