Gold and Silver Price Manipulation Part 1 of 11 by illuminati silver

Video transcript:

Today is Wednesday 6th January 2016 and we are addressing the issue of Gold and Silver price manipulation. This subject is so large we are therefore going to produce a series of 11 videos covering all aspects of this very interesting and yet complicated topic.

It is a well-known fact that since their highs of 2011 in US dollar terms gold has fallen some 44% to its current price of $1085 and silver has fallen some 72% with it currently standing at $14 an oz.

Many reasons have been given for such decreases in price, many of which have ranged from falling demand, lack of investor interest right through to deliberate price manipulation.
Today we are going to give Jim Rickards View which is, that prices are manipulated and the reasons for that manipulation.

For those who do not know who Jim Rickards is, his Wikipedia entry states:

“James G. Rickards is an American lawyer. He is a regular commentator on finance, and is the author of The New York Times bestseller Currency Wars: The Making of the Next Global Crisis, published in 2011, and The Death of Money: The Coming Collapse of the International Monetary System, published in 2014.” He has also been involved in investment and held prominent positions within the economic field over the past 35 years.
Earlier this year Jim Rickards produced an article in the Daily Reckoning publication laying out his view as to why China has been allowed to accumulate Gold at relatively low prices. If he is accurate then his findings will prove quite surprising to those who believe that Western gold Stocks have been depleted.

This in essence is what he claims:

• The United States has 70% of its reserves in Gold, while China only has 1% of its reserves in gold.
• THE US gold reserves at current market prices are about 2.7% of GDP. Russia is similar and Europe stands at 4%, while China’s official reserves stand at a paltry 0.7%
• Even allowing for China holding say 4000 tons of gold, this will still only bring its reserves as a percentage of GDP in line with the US and Russia, when it needs to be higher as its economy is still continuing to grow at a
relatively high level.
• If gold was allowed to rise in price, then there would be no possibility for China to be able to afford to purchase the gold it needs to in order to reach those levels of reserves required.
• With China being the World’s second largest economy, and much of the world’s trade is dependent on that economy, it has to accommodate China to amass that appropriate level of gold before the price cap can be allowed
to be released.
• With the US requiring to maintain the dollar as a World currency, at least for the time being, and with Chinese reserves being vulnerable to the dollar (i.e. if the dollar value falls then the price of Chinese assets also falls which
will result in potentially catastrophic losses), it is in the World’s interests to maintain a relatively high dollar value and enable China to acquire its gold at current low prices. Thereby hedging their asset position.

So Rickards puts forward the argument that prices are deliberately held down in order to help China out. He also adds a fear that there is a possibility that there may not be sufficient time available for China to acquire all of the gold it needs.

Perhaps a cynic might say, well if he is right, then the answer is simple, push the price of gold down even further.

Part 2 will reveal another case in favour of manipulation and the reasons why it is being carried out.

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Disclaimer:

Illuminati Silver owners come from a background of Banking, International Wealth Management and Economics. Having now retired from these worlds we are not qualified to give investment advice. Therefore, this and other productions must not be deemed to be giving such advice and merely represent the personal views of its owners.