Robert Kiyosaki: Central Banks Flooding Gold Market?

[doctor jones]

Conspiracy of the Rich
The 8 New Rules of Money
by Robert Kiyosaki
Online Exclusive Update - #102
September 29, 2011

What’s Happening to Gold?
Gold had its biggest drop in 28 years last week. As I write, gold is below $1,600 an ounce—down from it’s high of over $1,800.

So what’s happening to the price of gold? My answer is, “I don’t know.”

A friend suspects that the big central banks are selling gold to raise cash. Is that true? Again, I do not know. But central banks are the only ones who could move the price of gold that drastically that quickly. If the central banks are selling gold to raise cash, that’s not good news for the world economy. If they’re raising cash, then the economy is very weak. This isn’t good.

Then again, the price of gold could be coming down because the economy is strong. Gold is generally a fear investment, and if fear is going down, then the price of gold comes down.

If the sell-off in gold is because the economy is strong and growing again, the sell-off in gold is good news for the economy.

At this moment, I don’t know if the sell-off is good or bad news for the economy. I doubt the economy is getting better…but miracles do happen.

Another reason for the sharp fall in the price of gold could be that we’re simply overdue for a correction. Gold has gone up for over ten years without a major correction—so we were long overdue.

Back in July 2011, gold was below $1,500 and trading around $1,480. I was excited, thinking gold would go down below $1,300. Then over night, gold shot up over $1,500 and kept heading up. Like many people, I panicked and thought I missed the move up. Rather than buy, I stood on the side and watched the price of gold climb as smaller central banks, such as the Bank of Korea, began buying.

Obviously, the correction I was waiting for then is now happening.

Is this time to buy gold and silver?

My answer is always the same. You need to do your own study and research, and test for yourself. If you can’t tolerate the ups and downs of markets, it’s best to allow someone else to invest for you, regardless of what you invest in.

I’ve bought gold since the 1970’s, when it was $85 an ounce. I love gold simply because I don’t trust our government and corporate leaders. That hasn’t changed.

If you trust our corporate and government leaders to fix our global economic problems, then gold is not for you. Stocks might be a better investment.

If gold breaks $1,400 an ounce and silver breaks $24 an ounce, I might begin buying again. For now, I have enough, and it’s never good to become greedy.

Remember, there are only two emotions that drive a market: greed and fear. Right now, fear is in control, which is good because if gold keeps dropping in price, and I’ll be able to buy more at lower prices. When fear is strong and prices are low, then greed creeps back in and buyers like me begin buying again.

What’s most confusing to me, however, is that everything is down. Stocks are down, oil is down, gold is down, home sales are down, and jobs are down. It seems fear is everywhere.

To me, this is not a good sign. If everything is down, we’re all going down. If everything is going down, a gun might be your best buy.

Thank you for supporting COR.

Robert Kiyosaki

[Endgame]

Robert Kiyosaki is a fucking charlatan.

http://www.johntreed.com/Kiyosaki.html

[doctor jones]

Robert Kiyosaki is a fucking charlatan.

http://www.johntreed.com/Kiyosaki.html

I've read his books and they gave me the out of the box thinking I needed in terms of finances at the time. So why don't you stop taking John Treed's word for it and just read what the guy writes. What he wrote above has some truth to it. Why discard everything the man says?

[doctor jones]

I've read his books and they gave me the out of the box thinking I needed in terms of finances at the time. So why don't you stop taking John Treed's word for it and just read what the guy writes. What he wrote above has some truth to it. Why discard everything the man says?

Not to mention in his last book Conspiracy of the Rich he pumped Ron Paul as the only presidential candidate in 2008 with real solutions.

[Zippyjuan]

Interesting theory- that the only reason for gold to go down is due to central banks selling. Meanwhile other commodities have also been moving up and down. I guess that central banks are selling those assets as well? Something to consider.

[Travlyr]

Interesting theory- that the only reason for gold to go down is due to central banks selling. Meanwhile other commodities have also been moving up and down. I guess that central banks are selling those assets as well? Something to consider.
Thanks for pointing this out.

All the other commodities are manipulated as well. Corn, beans, sugar, coffee, silver, oil, interest rates, and on and on. That is what the central planned economy does by definition. It sucks. A central planned economy is the reason for unemployment.

The number one job for liberty advocates is to End The Central Planner's Manipulation of the economy - ASAP. I hear people say that the economy is in a downturn. Bullshit. It is manipulated. It is down because the central planners have no idea what they are doing except that they prosper with insider trading, bailouts, and bonuses while people who are not privileged are unemployed and left to collecting cans.

We have a lot of forum members who would be happy if they could find a job that would pay them enough to live while Bernanke and friends have $billions. It is total bullshit. Then people like Rachel Maddow criticize Rand Paul for not wanting to pile on more regulations because she has no idea how a market is supposed to work... and she probably doesn't care because she too is likely making six figures to shill for the elite central planners. Everything is just fine in her world.

Some on the forums have said something along the lines of "just let me have a van to live in," while others would be happy with a job that lasts more than a week. Sure, a free market economy falters on occasion if there is a drought, disease, natural disasters, but not because ONE entity controls the jobs for millions. END THE FED - ASAP. END CENTRAL PLANNING - ASAP. And let us go back to work.

[Zippyjuan]

Actually I meant to imply that they weren't manipulating the gold market. Take the US Federal Reserve for example. They don't own gold to sell (they do store some of the US government gold but don't own it themselves). Or wheat or natural gas or oil to sell and push down the prices. Yes, their monetary policies can effect the prices of commodities, but they cannot target something like gold and what would it benefit them if they did? What do they gain if the price of gold goes down by ten percent?

[doctor jones]

Actually I meant to imply that they weren't manipulating the gold market. Take the US Federal Reserve for example. They don't own gold to sell (they do store some of the US government gold but don't own it themselves). Or wheat or natural gas or oil to sell and push down the prices. Yes, their monetary policies can effect the prices of commodities, but they cannot target something like gold and what would it benefit them if they did? What do they gain if the price of gold goes down by ten percent?

True... in the long run it doesn't do anything for them... but this government often seems pretty short sighted.

Who knows. We can't audit the damn thing.

[Travlyr]

But the central planners are manipulating the markets ... all the markets ... that is what they do by definition. The only other real reason gold would go up or down is because of the immutable laws of supply and demand. For example, if a huge gold shipment sunk into the ring of fire might make the supply of gold go down which would make the available gold go up in price. Or if a huge gold mine was discovered then the price of gold might go down because there is more supply. But silver would not drop 25% in a week without a reason... it is ludicrous. Take air for instance ... there is abundant air so it is free.

[Endgame]

But the central planners are manipulating the markets ... all the markets ... that is what they do by definition. The only other real reason gold would go up or down is because of the immutable laws of supply and demand. For example, if a huge gold shipment sunk into the ring of fire might make the supply of gold go down which would make the available gold go up in price. Or if a huge gold mine was discovered then the price of gold might go down because there is more supply. But silver would not drop 25% in a week without a reason... it is ludicrous. Take air for instance ... there is abundant air so it is free.

Silver is an industrial metal more than it is a monetary metal. If you've been watching it you know it's volatile. Everyone is bearish on the global economy right now. It only makes sense that silver would crash with it. As for gold, not only was it in a short term bubble, but people are having to sell it to stay afloat just like in 2008. Precious metals prices aren't purely a function of inflation or supply of the metals themselves and demand also includes speculative demand. Sure, the CME can cause downswings in these metals with margin hikes, but that just shows there are a lot of people buying them with leverage. Speculators, in other words. Next time something as stable as gold goes up 20% in a month, sell and wait for another buying opportunity. Nothing goes straight up or straight down. The goldbug crowd like Peter Schiff and ZeroHedge and so forth are a lot more aware of what is going on than CNBC, but they can't be trusted 100%.

[Zippyjuan]

But the central planners are manipulating the markets ... all the markets ... that is what they do by definition. The only other real reason gold would go up or down is because of the immutable laws of supply and demand. For example, if a huge gold shipment sunk into the ring of fire might make the supply of gold go down which would make the available gold go up in price. Or if a huge gold mine was discovered then the price of gold might go down because there is more supply. But silver would not drop 25% in a week without a reason... it is ludicrous. Take air for instance ... there is abundant air so it is free.

Exactly- supply and demand. The Federal Reserve is not changing the supply or demand for gold since they are not producing it, not buying it, and not selling it.

The price of gold declined for over 20 years from 1980 to about 2003. Were central banks selling tons of gold during that entire time?

Silver is about $31- even after the decline that is still 50% higher than it was just last year. Given the rate of rise in the price of silver, a drop of 25% is really not that much. Bubbles do burst or deflate eventualy. They don't go up forever.

[Travlyr]

Silver is an industrial metal more than it is a monetary metal. If you've been watching it you know it's volatile. Everyone is bearish on the global economy right now. It only makes sense that silver would crash with it. As for gold, not only was it in a short term bubble, but people are having to sell it to stay afloat just like in 2008. Next time something as stable as gold goes up 20% in a month, sell and wait for another buying opportunity. Nothing goes straight up or straight down.

Markets are volatile because they are manipulated by central planners. Central planners pass laws and regulations that move markets. The insiders profit (Insider Trading Is Perfectly Legal – But Only For Members Of The U.S. Congress) while nearly everybody else loses. In free markets, the markets move by natural occurrences not by actions of men.

[Travlyr]

Exactly- supply and demand. The Federal Reserve is not changing the supply or demand for gold since they are not producing it, not buying it, and not selling it.

The price of gold declined for over 20 years from 1980 to about 2003. Were central banks selling tons of gold during that entire time?

The markets have been controlled for nearly 100 years.

[Endgame]

Markets are volatile because they are manipulated by central planners. Central planners pass laws and regulations that move markets. The insiders profit (Insider Trading Is Perfectly Legal – But Only For Members Of The U.S. Congress) while nearly everybody else loses. In free markets, the markets move by natural occurrences not by actions of men.

Sure, government distorts the market massively, and inflation is why we have a bull market overall in commodities and precious metals but there isn't some centralized conspiracy behind every correction along the way.

Do you think that in a free market, leverage, options and futures contracts wouldn't exist, that speculation wouldn't exist? Markets are the actions of men.

[Travlyr]

Sure, government distorts the market massively, and inflation is why we have a bull market overall in commodities and precious metals but there isn't some centralized conspiracy behind every correction along the way.

Do you think that in a free market, leverage, options and futures contracts wouldn't exist, that speculation wouldn't exist? Markets are the actions of men.
It is not a conspiracy. It is central banking and planning which allows for people with inside information to profit at the expense of the rest of society. For example, if you knew for certain that interest rates were going to rise and when (something that Ben Bernanke and his friends know) what would be your reaction?

[Endgame]

It is not a conspiracy. It is central banking and planning which allows for people with inside information to profit at the expense of the rest of society. For example, if you knew for certain that interest rates were going to rise and when (something that Ben Bernanke and his friends know) what would be your reaction?

If the Fed ever reverses its inflationary policies and raises interest rates, it's going to cause a crash in commodities and equities. Just look what happened last week when their announcement wasn't as inflationary as everyone was expecting. If I had a crystal ball to see that coming, I suppose I would short stocks and commodities with every bit of buying power I could possibly get my hands on. I have no doubt that goes on within the Fed higher-ups and their buddies. But that doesn't mean they're the only force behind the market.

[Travlyr]

If the Fed ever reverses its inflationary policies and raises interest rates, it's going to cause a crash in commodities and equities. Just look what happened last week when their announcement wasn't as inflationary as everyone was expecting. If I had a crystal ball to see that coming, I suppose I would short stocks and commodities with every bit of buying power I could possibly get my hands on. I have no doubt that goes on within the Fed higher-ups and their buddies.

Thanks, that is exactly my point. They don't need a crystal ball, but we do because they control the markets and we must second guess their actions. It's bullshit. Market manipulation is the reason for the economic downturn. End The Fed - ASAP. Let us live free.

[Endgame]

Thanks, that is exactly my point. They don't need a crystal ball, but we do because they control the markets and we must second guess their actions. It's bullshit. Market manipulation is the reason for the economic downturn. End The Fed - ASAP. Let us live free.

I don't disagree with any of that. I just don't think that every short-term correction in precious metals is entirely due to sinister central planners.

[Zippyjuan]

It is not a conspiracy. It is central banking and planning which allows for people with inside information to profit at the expense of the rest of society. For example, if you knew for certain that interest rates were going to rise and when (something that Ben Bernanke and his friends know) what would be your reaction?

The Fed has always announced their actions well in advance. They do not "suddenly and secretly" raise or lower interest rates- and when they do, they make incremental, not dramatic changes. They do not want to spook the markets but instead allow them to plan adn react. They take a certain action because they want the market to react in a certain way (they don't always though). Sometimes threatening a certain action (such as the possiblity of raising interest rates) will have the desired effect and the action is not needed- sometimes the action does not have the desired result. There is no real "insider information" on that which would give anybody any advantage.

If markets are controlled on the downside they must also be controlled on the upside. If they want gold and silver to go down, they must have also wanted it to go up. To do this on a global scale (and the commodities markets are indeed global) and as you say "for nearly 100 years" would require massive resources- more than all the assets of all the central banks in the world combined.

[Travlyr]

Insider Trading Is Perfectly Legal – But Only For Members Of The U.S. Congress (http://theeconomiccollapseblog.com/archives/insider-trading-is-perfectly-legal-but-only-for-members-of-the-u-s-congress)

Privileged people win in a centrally controlled economy at the expense of those who are not privileged.

[Travlyr]

Exactly- supply and demand. The Federal Reserve is not changing the supply or demand for gold since they are not producing it, not buying it, and not selling it.

The price of gold declined for over 20 years from 1980 to about 2003. Were central banks selling tons of gold during that entire time?

Silver is about $31- even after the decline that is still 50% higher than it was just last year. Given the rate of rise in the price of silver, a drop of 25% is really not that much. Bubbles do burst or deflate eventualy. They don't go up forever.

Nobody is saying that markets go up forever. Bubbles are from manipulation. Currently almost everyone is fine with the central bank manipulation of markets, but that will end. It cannot end soon enough for me. When it ends, then the market gambling is over and risk assessment can be calculated. Until then, the right move is to get to know your Senator or some really important Ivy League dude in an Armani suit and treat them like they are some sort of god. It sucks, but it is the way it is.

[Zippyjuan]

Markets are volatile because they are manipulated by central planners. Central planners pass laws and regulations that move markets. The insiders profit (Insider Trading Is Perfectly Legal – But Only For Members Of The U.S. Congress) while nearly everybody else loses. In free markets, the markets move by natural occurrences not by actions of men.

Markets are volitile because investors are emotional and not always rational. That is human nature. If you do believe that the markets are totally controlled it would be best to stay out of them- including buying gold and silver since they are conspiring- against you, the "little guy".

Bubbles can occur naturally. Investors want to put their money wherever they feel they can get the highest rate of return at an acceptable rate of risk. Now if something offers a higher than average return, more investors are going to try to put their money into it and also get in on that higher return. That increases the price further. More investors notice and even more money pours in. Eventually there is not enough new money to keep it rising so the price rise slows or stops and the gains are no longer above average so the money moves back out and seeks something else- the "hot investment" of the moment and the bubble moves from one thing to another. No manipulation required.

Manipulation can occur- but the bigger the market, the more difficult it is to manipulate. A single stock with low capitlalization like penny stocks can be manipulated but to try to manipulate a market such as the global gold or silver market- particularly over long periods of time- is extremely difficult. Consider the Hunt brothers attempt to corner the silver market. They could not maintain their position over a long period of time against the world market and their efforts collapsed.

[Travlyr]

Markets are volitile because investors are emotional and not always rational. That is human nature. If you do believe that the markets are totally controlled it would be best to stay out of them- including buying gold and silver since they are conspiring- against you, the "little guy".
It is not an ongoing conspiracy as such the way you describe it. The illegal conspiracy happened in November 1910 with Paul Warburg and other elite eventually gaining control of the money supply in 1913. It is good to be a descendent of the Warburgs or well connected elite even today, but it sucks to not be well connected. And I disagree with the last part... about gold and silver. Gold and silver is still real money. Get as much real money as you can because the fake money is going away as it always does.


Bubbles can occur naturally. Investors want to put their money wherever they feel they can get the highest rate of return at an acceptable rate of risk. Now if something offers a higher than average return, more investors are going to try to put their money into it and also get in on that higher return. That increases the price further. More investors notice and even more money pours in. Eventually there is not enough new money to keep it rising so the price rise slows or stops and the gains are no longer above average so the money moves back out and seeks something else- the "hot investment" of the moment and the bubble moves from one thing to another. No manipulation required.
I concede that point. Markets can form natural bubbles. Today the bubbles are formed intentionally which screws a lot of people out of their hard earned savings for the benefit of the elite.


Manipulation can occur- but the bigger the market, the more difficult it is to manipulate. A single stock with low capitlalization like penny stocks can be manipulated but to try to manipulate a market such as the global gold or silver market- particularly over long periods of time- is extremely difficult. Consider the Hunt brothers attempt to corner the silver market. They could not maintain their position over a long period of time against the world market and their efforts collapsed.

Sure, but the Hunt Brothers didn't have the laws to protect them the way the central banking elite and the politicians do.

[Zippyjuan]

Today the bubbles are formed intentionally which screws a lot of people out of their hard earned savings for the benefit of the elite.



How would you go about intentionally starting a bubble? You need a lot of people and a lot of money to go along with you.

[Travlyr]

How would you go about intentionally starting a bubble? You need a lot of people and a lot of money to go along with you.

If I had something to say about the money supply and interest rates, and could create money at will, then to create a bubble in housing, for instance, I would first start shilling for everyone to share in the dream of homeownership. I would look to "respected" Nobel Prize winning economists, perhaps a New York Times best selling author, work with other "respected" news outlets to shill for "equality" ... "live the American dream" mantras.

I would encourage politicians that "everyone should have the right to own a home" while lobbying for legislation to make lending easy... perhaps even back the loans with a government agency... like Fanny Mae, Freddie Mac, or HUD, and perhaps involve treasury secretaries (both present and past) in the scheme. Then I would reduce interest rates and promote the idea that government will back risky behavior so that lenders would be free to lend to anyone and everyone ... maybe promote something like "no documentation loans" or "teaser rate loans", or maybe even "no doc, no down, & low interest for 3 years" type incentives. I would promote bundling and selling securities to reduce the short-term exposure and keep the AAA credit rating intact. I would make it look like everything is totally normal with the economy... lots of good jobs... and easy money.

Then I would point out that making money in housing is easy. All you have to do is buy a house and wait, earn equity in the markets, maybe take-out a home equity loan or use the home equity as an ATM of sorts or something like that and before you know it ... BOOM ... housing prices are bubbled.

[Zippyjuan]

One person can do all that? Amazing! It is true that there were many factors which contributed to the housing bubble as you correctly point out.

The "American Dream" of home ownership is decades old. Nothing new. I would definately agree that weakening lending standards was a mojor factor- perhaps THE major factor. People were given loans who never should have gotten them. Interest rates had been falling for some time before the boom (over 20 years) and are even lower now so they were a limited factor- that is the only part the Fed had any control over. Inflation was low so low interest rates were apropriate. The Fed also does not have control over mortgage rates- those rates are connected to long term Treasury notes whose prices are determined by auctions which the Fed does not participate in.

You are also right about the Mortgage Backed Security market. The risks were greatly understated and the demand for these securities (because they offered above average returns for their perceived safety- one of the factors I mentioned earlier) fueled demand for even more mortgages to be issued even to those who would not have normally qualified. Emotions and the thought of excess profits drove away questioning the rationality of the MBS as a good investment.

The housing bubble is considered to have started around 2005- 2006. At that time, the Federal Reserve was RAISING its prime rate from about 4% in 2004 to nearly double- 8% by 2006 and kept it there for the next year or so. They did not start lowing that rate until 2008 when the collapse occured.
http://mortgage-x.com/images/graph/r_30_prime.gif
http://mortgage-x.com/trends.htm

[WilliamC]

Of course the markets are manipulated, don't you read zerohedge?

Ron Paul knows this


http://www.youtube.com/watch?v=oUZwL9GPcNw

[american.swan]

I heard gold had fallen so I check out the various charts. Gold hasn't traded below it's 200 day moving average in a very long long time. Yes, gold dropped recently, BUT until it goes below the 200 day moving average there isn't anything to worry about. In fact, with quick rises, you can expect corrections back to the 200 day moving average. Now, if the price dropped below the 200 day moving average, it's anyone's guess. Maybe it will fall much further or it could be a GREAT buying chance.