IF the price of gold is easily manipulated and suppressed, as many here would claim it is, then someone please tell me why the likes of paulson or einhorn would invest so heavily in it. is it because these guys are not aware of what you are aware of? btw, this is not meant to be a rhetorical question. I am earnestly looking for answers.
Excellent question and I have pondered as well. i believe that while the "paper' manipulation can and does occur(as with other stocks as well)ultimately the fundamental valuation will be reached as dictated by the global physical markets.While none can predict how/when this will be manipulated, the intrinsic benefits of owning gold and silver seem undeniable.I would suggest that you take an attitude of being an investor and not a speculator and use time as an ally.
i am certainly looking more favorably to buying gold right now. i got out, fortunately, about 1.5 yrs ago and want back in, but i need to feel more comfortable about the price suppression issue. hence, the question i asked.
someone on this board yesterday mentioned that santelli said the price of gold is suppressed by paper gold. i guess by that means it is suppressed because it is shorted. big deal, all stocks are shorted as well. but does santelli know something that paulson, soros, einhorn and others don't know? is that even possible?
santelli traded gold futures, when he actually traded. He wouldn't have a floor to talk from without paper (actually electronic).
short futures bets on gold have increased, but I would attribute most of this to mechanical computer driven trend following managed futures programs. These same trend followers were a tail wind when gold went up, and they will be again when gold reverses.
Dollar is getting stronger, does Obama want that??
Fed can control short rates and intermediate for the time being.
Beyond that, influence is pretty weak. They could even lose control of intermediate if inflation kicks up