Buy #gold? Will it go up if the #economy goes down?

  • Big banks manipulate gold price down
  • Gold will go up

One way to protect your savings is to buy physical gold – not paper. ‘Goldbugs’ say that paper currencies are not real, they are not backed by anything valuable. Gold has been trusted over centuries so when currencies go down, gold goes up.

Yet, the gold price has dropped a staggering £15 in 12 hours. By 09:00 on 15 February, it was £1,052 for one ounce. By  21:00, it was only £1,037. So does this prove that gold is a risk?

It’s not the first time gold has been driven down. The gold market is confused due to ‘paper gold’ – or certificates that say that the buyer can claim its value of gold when the claim is made. Trouble is, there is far more paper gold than real gold. And speculators and the big banks like JP Morgan and Goldman Sachs and even central banks like the Bank of England can use paper to manipulate the gold price.

But despite this, over the years gold has gone up in value as currencies loose theirs. So, what’s happening now?

From it’s 7 October 2012 high of £1,108, gold has been hammered three times. It went down to £1,047 on 2 November. Went up to £1,092 by 24 November. Hammered down to £1,024 by 24 December. Back up to £1,068 by 4 February. I believe that the big banks plan to get it to £985 and hope it goes back to £929.

Between June 2011 and August 2011, it went from £929 to £1,161. A big increase (probably being over-bought) that had to be stopped. So, it dropped to £1,029 by 13 October. It’s been trading between £1139 and £985 ever since. Yet, looking at trends, it ought to be at around £1,350.

In June 11, the stock market had its biggest fall in the year ‘due to Greek crisis’ and bad US economic news. Fulford says that China and Middle East were refusing to subsidise the US.

I’d say the decline will be over one and a half months. There will then be a series of big purchases over 10 days to create a big increase. Or there will be a stock market fall.

What’s interesting is that the big sell off started around 12:00 on Friday. This is when the New York banks start trading. That’s when sell offs usually occur. But there was selling on Thursday.  This could be hedge funds. If so Gregory Mannarino may have a point. It also suggests hedge funds and banks working together.

But it seems to me that the rest of the world will pile into gold if it goes down. So, their plan won’t work. It would be good to save money and get ready to buy.

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