Is The Price of Gold Manipulated or Not?

[Paulitician]

And if so what is the motivation? Here is a great panel discussion hosted by Al Korelin of the Korelin Economics Report (http://www.kereport.com):

Gold Manipulation (http://www.kereport.com/videos/GoldManipulation/)

Everyone should watch it. It's pretty clear what the answer is, as I'm sure many of you are aware and would agree. I think a bigger and better question, which is brought up in video 2, is what is destined to become of our current system, and if and when it does collapse, will we learn the error of our ways and go to a gold stardard, or just move onto another fiat currency? I hope we can at least move toward a commodity based standard with competing currencies like Ronnie is proposing.

[fsk]

My answer is "Yes, it's manipulated (http://fskrealityguide.blogspot.com/2007/08/gold-and-silver-price-manipulation.html)". The good news is that the central banks are close to exhausting their gold reserves, which means they won't be able to suppress the price much longer.

[Fox McCloud]

the price of gold and silver is definitely manipulated (Ron even said this)......the banks manipulate the Gold, and the insurance companies manipulate the silver.

Word of the wise; while gold and silver are "expensive" now....if you want to invest, do it now; I can almost guarantee that in 2008-2009 gold and silver will absolutely skyrocket in value (and I'm not talking about 50% gains; I'm talking triple digit gains).

[1913_to_2008]

Yes, but, when the shit hits the fan you'll gain big because the y won't be able to hold their grip.

[Dr.3D]

What I'm still trying to figure out, is why the price of silver follows the price of gold so closely. I mean, when the price of gold drops, so does the price of silver. It happens almost as if the two are connected together.

Can anybody explain why this happens?

[ladyliberty3]

According to this I can't see how anything is going to be a safe investment. http://news.goldseek.com/GoldSeek/1196605589.php

[ronpaulblogsdotcom]

Its been proven that they try to adjust it for years.

$400 was an artificial barrier and they would dump gold when it got over that number because it signified economic problems. But they are loosing the ability to do it or they don't seem to be interested anymore. Hence the record gold at what, $787 an ounce?

[Dave Pedersen]

They have a new and very important reason to float the dollar against gold for a little longer:

Keep Ron Paul in single digits.

Ron has been talking a lot about the dollar crisis and rightly so. However he must balance that with a positive message of what we as free people can achieve. Otherwise his success will rely on the dollar continuing to slump in the short term combined with another negative which can be minimized for a few months: casualties in Iraq.

Those with the influence can keep the dollar up a few more months very easily and thereby foil RP's argument among those unthinking millions who only respond to immediate fearmongering.

Go positive, stay positive, Dr. Ron Paul

[Bradley in DC]

There is no secret that central banks (large holders of gold reserves) have been selling and leasing their gold stocks. Many European central banks (http://www.kitco.com/weekly/paulvaneeden/dec052003.html) started selling some of their stocks to meet the budget requirements for adoption of the euro. The "Washington Agreement (http://www.safehaven.com/article-907.htm)" limited those sales.

In the US, the Exchange Stabilization Fund (http://www.treas.gov/offices/international-affairs/esf/) (ESF (http://www.ny.frb.org/aboutthefed/fedpoint/fed14.html)) has reportedly (http://www.gata.org/node/4362) been active in the gold markets (http://www.usagold.com/gildedopinion/turkesfgold.html) as well. There is very little knowledge of--much less scrutiny of--the ESF. Dr. Paul (http://www.digitalmoneyworld.com/ron-paul-talks-about-digital-gold-currency-2002/) is one of the few (http://www.house.gov/paul/press/press2002/pr021402.htm) interested.

The IMF (http://www.imf.org/external/np/exr/facts/gold.htm) has also joined the gold sales (http://www.house.gov/jec/imf/gold/gold.htm), or proposed to do so which has a similar effect on the gold price, especially on the futures market.

Other central banks, especially in East Asia, has been adding to their gold stocks.

All of these governmental interventions affect, or "manipulate", the gold price, yes.

[Paulitician]

They have a new and very important reason to float the dollar against gold for a little longer:

Keep Ron Paul in single digits.
Exactly :D

[fsk]

If you invest in gold or silver, your long-term inflation-adjusted return should be 0%. After all, you're investing in "pure money"!

The bad news is that a 0% inflation-adjusted return might really be the best investment out there!