<<because it appears to no longer be a free market.>>
As long as you and I are still free to buy or sell, I don't see what's stopping it from being a free market.
<<a group is afforded the power to control/manipulate and thereby to define the rationalities or irrationalities that exist in the system.>>
Would you say that labor unions manipulate wages? or that farmer co-ops manipulate milk prices? or that HMO's manipulate doctor's fees? In any given market, whether it's for gold, milk, or Super Bowl tickets, you can be sure that participants, ALL participants, will be angling to take positions that they think give them the best prospect for gain. That certain players are larger, and by virtue of their size have a greater impact on the market than me (and I presume you) doesn't necessarily make them manipulative. If you have a market where certain participants can have their behaviour changed by the acts, or perceive acts, of certain other participants, I don't call that a manipulated market. I call that a market with some fools in it.
That gold is trading around US$287 right now offends a lot of people's sensibilities. So much so that a lot of people insist the market is "manipulated". Stop worrying about whether or not that market is manipulated or not. Are you FREE to buy or sell at these prices? Do you think a price of US$287 is ridiculously low? Then BUY some. Do you think a price of US$287 is ridiculously high? Then SELL some. Who's stopping you from doing either? You won't hear me griping with these prices; and if gold falls below US$225, well, I'll take it on the chin with a lot of stocks (ELD, GRE, BGO [I know, I know, I don't need to hear it] and BMG) but I'll just be buying more. Gold, even at US$225/oz, isn't manipulated. It's just cheap.
But just because it's cheap (I NEVER thought it'd fall below $300 before) doesn't mean it's manipulated. Just means that I (and a lot of other people) was wrong. |
