Gold represents 1% of the world’s financial assets and of institutional money, it is 1/2%. Nobody owns gold. In spite of this, gold has risen 6 fold even while governments and banks are attempting to manipulate and suppress the price of gold. It is now becoming classified as a tier 1 asset along with cash in calculating bank reserves. What does this tell you?
The gold paper market is 100 times bigger than the physical market thus allowing for manipulation of the price. Governments hate gold because it reveals their deceitful actions.
People are beginning to distrust the banking system. They will then no longer trust the government. The Liborgate scandal where global interest rates have been manipulated may not produce any prosecutions. Why? Because governments have also been colluding to keep rates low. The average saver does not seem to comprehend that this scandal is the basis for his or her savings account not producing monthly income consistent with the true market rate. The saver lost money every month as a result of this scandal. Do you think that this is an isolated incident in the current financial system? What about Madoff, MF Global, and now PFGBest? When will the next shoe drop and what size will it be?
Lawless and unrighteous investment bankers operate by greed and fear. They view the public as dopes. Every deal they attempt is based upon greed- how much money can I make? If there is no risk of reprisal for their greediness, they become brazen. Only fear of punishment will keep them at bay. Since in recent times there have been no felony convictions of top investment bankers, the fear has been removed and greed is now at a zenith. It matters not to these people whether cities, counties, states, or countries go bankrupt as a result of their greedy actions. It matters not that people lose their jobs as a result of a flawed financial deal. The goal is to enrich their own pocketbook. Only by the real and present danger of jail would these banksters move their value pendulum to the other end- fear. However, the current economic environment needs to facilitate investment activity to sustain or reinvigorate economic growth numbers. Without growth, the current system would implode and those in power would lose their jobs. Greed seeks power thus they don’t want to lose the power they currently wield. Do they have a true solution to their problem? No, and loss of trust by the population will be the outcome. When that happens, what financial asset do you think that the average person will flee to?
The central governments are convinced that people will flee to gold and silver. I conclude this by their actions to manipulate the price downward. The price of gold is the classic canary in the coal mine. Once the average person sees the core values of those in power, he or she will take action to protect what little wealth is left. What asset would you convert to?
If my conclusion is correct, both gold and silver will skyrocket. We do not give investment advice nor endorse any particular investment. These blogs are meant to provide a macroeconomic picture of the current system and provide spiritual insight to the state of mankind. You should seek the advise of an investment advisor before making any investment.