bowman711

Buying Gold for Oil Like George Soros

I would say that $145+ oil more accurately reflects the 'new economy' demand for oil and the debasing of the dollar (inflation) than does gold under $1,000/oz. It is well documented that gold is being artificially kept low. In the last reporting period, for example, every single open interest long position was matched by a naked short position by someone (or a group of the bullion banks).

When dollars are created by fiat, each dollar is reduced in value. Likewise, when gold is 'created' by naked shorts, each real ounce of gold is devalued.

If you have an economy made up of just 1,000 oz of gold, and another 1,000 oz is 'created' by naked shorting gold (creating a contract for gold that does not exist), you now have on paper 2,000 oz of gold, but still only 1,000 oz of real gold. So, the 'price' of gold is effectively cut in half.