I’ve been watching the precious metals markets for a while. It really makes no sense unless there is some heavy manipulation going on. I have gold and I’d like to sell my gold, but I keep thinking that I need to hang onto it until the price rebounds. But there are bigger powers that have their hands in this market. I just wish someone could explain the logic of what seems to be a conspiracy to under value a metal that usually reacts differently when economies are unstable. Everything I see tells me that gold and silver should be priced three times higher than they are. Manipulation? Lack of need of the metals as raw material? I don’t think so.
The Economist has their theory about gold prices: Why the price of gold is falling. I see similar musings at Marketwatch: Here is the real reason gold is falling. Gold seasonality? Seriously? I think gold is more stable than that. What, are they saying that gold is worth more during wedding season?
Maybe it is my skeptical nature or I am watching Fox News too much – but the economy is not stable. The dollar is manipulated, retail sales of consumer goods is way off (Christmas was dismal for most retailers), and even countries that appeared strong, like Japan and China – appear to be in trouble. Gold should be much more valuable with so many currencies and economies on the skids.
Don’t get me wrong, I’m not betting on economic collapse or anything – but I would like to have a hedge against inflation. And right now – gold is not that hedge. It’s flat in value. Silver is no better, but I keep hearing of the ‘industrial uses and manufacturing demand for silver’, yet it is not moving correctly either.
Look. I hate to sound like a conspiracy nut – but everything that is going on in the world leads me to believe that governments are behind this. Anybody out there have a clue as to who would gain from this?