bowman711

A Look at Extreme Gold Disparities

I have read several comentators who suggest that gold is being manipulated by the 'super big boys' on Wall Street. If so, it is probably to disguise the actual fall of the dollar in terms of gold. The fall of the dollar is, of course, a concern.

It seems to me that now there are only two ways to stop the decline. Either the Fed raises U.S. interest rates, or it pressures the other major currencies to lower their rates. The first option would likely push the U.S. economy into deep recession. [Indeed, I have read people writing about 'depression' for the first since I started studying economics over forty years ago.] The second would be to expand the money supply even more, and that would raise the price of gold in terms of Euro, Kroners, etc., if not in dollar terms as well.

Either way, I would submit that the disparity in gold to other commodities is probably the result of market manipulation of gold and not to free market factors. Why? Because, I would guess, the government and Fed and their 'inner friends' on Wall Street are trying to keep the market from a major collapse before the election.