Current Manipulation of Precious Metals
Egon von Greyerz
by Egon von Greyerz: Ignore
Every day 5,000
tons of silver and 650 tons of gold are traded in the paper market.
This is an astonishing 25% of annual production of each metal that
is traded daily. Currently there is clearly intervention to hold
down the price of gold and silver at every important level. Like
all interventions, this one will fail too. The paper market is massively
short and would be incapable of delivering even a small fraction
of physical gold or silver against their commitments.
So what we
are seeing is a short-term correction in the continuous rise in
gold and silver against paper money. The correction is likely to
be short-lived and eventually lead to new highs.
should not really be concerned. Gold will continue to reflect the
escalating deficits and the never-ending money printing by governments.
We know that
no government is capable of maintaining any serious level of austerity.
This will automatically lead to rejection by the voters and loss
of power. So governments worldwide will continue to spend money
they dont have and print endless amounts of it. The situation
is the same in the US. Neither candidate is capable of taking any
measure that will cut the escalating deficits. Since Bernanke became
chairman of the Fed in 2006, the Federal Debt has doubled from $8
trillion to $16 trillion! This makes Bernanke the most productive
person in history. But this is only the beginning. There is nothing
that will change the trend (as shown in the chart above) of rising
deficits and rising gold.
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