>>What I've been pondering is that the major central bankers of the world really need to apply continuing pressure upon gold so as not to permit any rise in the metal's price undermine their monetary policies.<<
I share this opinion also.
>>I see increasing tensions between finding "safe harbors" in fiat currencies, or in gold. Given that, minus a major unforeseen systemic shock (like LTCM), central bankers apparently retain considerable ability to manipulate gold prices through settling short sales on gold for cash.<<
Again, I agree here. Although I believe that there is a considerable gold position short that could add a great deal of fuel when prices turn significantly, It seems they have the muscle to control things, at least at this point.
>>In fact, I would suggest that for the sake of the current global financial system, they will do everything possible to prevent gold from regaining value as a "currency". And for this reason I have been hesitant to buy into gold at this time. I believe that with turmoil surrounding the EMU, and their desire create an alternative reserve currency to the dollar, there may be a concerted effort to further undermine gold prices.<<
Again, I believe they will not let gold move as to unsettle the currency markets, but if they drive it to far down, they will pay a price also. I am looking for them to loose control of this market, or for someone, who is a great financial competitor, to see an opportunity to turn the tables, such as China or some sort of Asian consortium.
Rich |
