Hi lorne,
My manipulation statement makes sense in the context of my total response. To take 2 lines out of my response, and ignore the rest manipulates their meaning. I submit, you manipulated the meaning of my thoughts. That is no worse, or better than the producers trying to lock in a price for the fruits of their labors, you or I buying stocks or gold to attempt to profit, or bullion dealers using market tools to try and profit from a complex market, or the Central Banks and Gold banks trying to make some money from their assets.
What is stupid if not criminal, is taking anothers assets and getting less than market rates for it. If you borrowed from a bank to buy some gold, the bank would charge a market rate. Why are we allowing the Central Banks to lease our gold, I repeat our gold, I repeat our gold at below market rates. Direct your venom where it is needed and deserved and I will follow you. To attack producers, investors, hedgers and others taking advantage of legal vehicles to try and make a buck is wasting time and ammunition, and destroying our credibility.
Just my thoughts, could be wrong. But I like where I live. I live in a peaceful country. If I don't like who is in power, I can vote for someone else and politic for another party. I live in opulence compared to 90% of the rest of the world, many of whom live under severe conditions imposed upon them by their governments or dictators.
Gold market manipulation, if it exists at all, is hardly the great beast of evil we must spend all our time and energies slaying. Perhaps it is more likely that market forces are playing on gold more and more, because governments have stopped manipulating it by pegging it with a false value. As it becomes more and more like the commodity it is, supply and demand become the only forces acting on it. As more and more supply comes on stream, as has happened in the last 3 decades, the POG drops. If it didn't, we could scream manipulation. Many independent suppliers compete to fill the demand, and the POG drops as they compete with one another. The huge warehouses of gold that governments accumulated as stores of wealth drop precipitously in value. The officials controlling these warehouses decide to lease the gold to make some money. Many CBs can't sell it off completely because they are legislated not to (now this legislation is manipulation). If the CBs lease out more than they have, or lease it for prices below market interest rates, who is the manipulator???? No doubt the CBs competed with one another to supply their gold to the gold sellers. So lease rates dropped as the CBs competed amongst each other to lend their gold. Supply vs demand. So now gold lease rates are low, and the price of gold is low. All explained by supply and demand.
Now focus on the suppliers of gold. Their costs are dropping because new technology is finding gold hidden from previous generations. New technology is also lowering the costs of finding, mining, crushing, grinding, processing, smelting, marketing and transporting gold. Some producers sell for less to guarantee revenue. Their costs are dropping, so they make more profit per ounce in spite of that. Others can't deliver at a profit, so they go out of business unless they upgrade their equipment, or find cheaper deposits. Producers of other metals produce gold as a byproduct, and sell the gold byproduct for whatever they can get. Which companies will survive? Place your bets, s**t your pants.
All the above explained by supply and demand. If demand rises above supply, the POG will go up. If costs rise above revenue, producers will go out of business, supply will dry up, and POG will rise.
Are these things going to happen?,...who knows.
Where can we find the manipulation of the POG? Look to lower than market lease rates, and government mandated stockpiling of the metal. Could gold once again be a currency in the Western World as in the past? Yes, if we slide back into the dark ages of murder, torture and loss of liberty and justice. Should we keep the huge warehouses? I think yes. Human beings have a history of murder, torture, and loss of liberty and justice. Only the real threat of total annihilation of all human beings on earth with weapons of mass destruction has seemed to have stopped nations from engaging in another world war. The world continues to need to watch for brain twisted dictators that could led the world into another one. Hence the world's recent actions on Iraq, Serbia and other notable terrorists. Given these possible occurrences, the so called manipulation of POG kind of pales in comparison, don't you think?
Just another opinion, russett is just another nobody. |
