What evidence can you put forward to support the
case for gold in light of recent drop in the price?
There is no question gold is going to resume its bull market
trend after blatant market interference in April and US Federal
Reserve jawboning in June about tapering bond purchases.
If you examine the April gold price decline, sales estimates for
the COMEX on Friday April 12 and Monday April 15 were between
125 and 400 tonnes. It was, purely and simply, a deliberate paper
gold attack as indicated by the size and speed of the sales that
then triggered sell stops and margin calls. There are only a few large
global institutions that could have flooded the market in that manner.
In June, this price raid on gold was reinforced by the idea that
the Fed Chairman, Ben Bernanke, is somehow going to end his
crescendo of computer-generated currency creation based on a
From German car sales being at a 20-year low to the slowdown
in China’s GDP growth to Japan’s failing stock market to the U.S.
record in food stamp usage, there is dominant evidence that the
global economy is coming undone.
What people seem to have overlooked is the Fed Chairman’s
admission that, should the economy worsen, he will expand,
not taper or discontinue, quantitative easing. Observers such
as John Williams at ShadowStats.com point to U.S. household
income that’s flatlined since 2009. Any talk of tapering is pure
propaganda to placate global markets on the U.S. dollar while
trying to suppress gold.
Is $10,000 gold a price limit in your mind?
We are in uncharted financial territory. If you look back over
the history of fiat currencies it’s actually extraordinary. Several
reputable analysts are calling for $10,000 gold, such as Société
Générale’s Edward Alberts. Jim Sinclair, the man Barron’s labeled
“Mr. Gold” because of his proven understanding of the gold
market, has stated he expects gold to eventually trade at $50,000
Given systematic global currency debasement, people need
to understand that it is not necessarily gold that will rise in value,
but currencies that will lose value against gold. Yet due to the
temporary manipulation of the paper gold price, I would suggest
that those with foresight have a historic opportu nity to acquire
uncompromised physical gold at a low price.
By Nick Barisheff, President and CEO of Bullion Management Group
Part III - Bullion Basics
The Case for (Much) Higher
Q & A