The manipulators of gold prices managed, through the clever use of faked volatility, to torpedo Switzerland's tiny foray back into the world of the gold standard. However, with oil prices down, the Indian economy is surging. As it has been since the days of Rome, when you put wealth in the hands of an Indian of any other kind, it will soon transform into gold.
Indian gold buying will be at record-breaking levels this year if oil prices stay low, and no amount of statist/bankster cartel intervention is likely to be sufficient to overcome the heavy physical demand that will inevitably come. Helping things along is the fact that the Indian government is now beginning to drop the various regulations that dramatically lowered the amount of gold that would have otherwise been flowing to India, starting in 2013, giving the cartel a break for a while.
With the demise of the Swiss referendum, statists has proven that their bankster friends can keep gold out of the system, without regard to price. That is important because a gold-based monetary system is incompatible with the welfare/warfare state that they seek to maintain. But, now they know for certain that it is possible for gold prices to rise to the moon, and still keep gold discredited.
We have see the Swiss National Bank sell off most of its gold for a few hundred dollars an ounce. That alone should have proven that those mandarins DO NOT know how to manage reserves. Yet, the Swiss have allowed them to keep the power to manage reserves. Why? Because the statists discredited gold by inducing volatility.
Frankly, some pro-gold promoting websites sicken me. I sometimes think that they are in league with the manipulators. There is one particular website, for example, that often has useful information from a minority of its commentators. But, it almost always introduces people by claiming he or she is "a legend in the business... one of the wealthiest men in the financial world". I wish they would quit that sort of nonsense. Who cares? I don't. Do you?
Puffing up gold, and catering to the greed instincts of the gold friendly crowd causes gold investors to lose money by buying at excessive prices created by the statist/bankster alliance. Yes! That's right! They not only manipulate the prices down, but also prod them along, on the way up... so long as the up portion is very very fast, and causes the price to reach unstable levels.
Instability in gold prices plays into the hands of the statists, much more than high or low prices. Imagine, for example, what would have happened in Switzerland, if gold had risen from $250 per ounce in 2001 to $1,200 an ounce, prior to the referendum, but never to $1,900. Who do you think would have won? That's right. Gold would now be backing the Swiss currency.
The bottom line is that the ups and downs are now what is being used to discredit gold. Gold bugs need to start realizing that and stop endlessly trying to pump up the price, in order to satisfy their own personal pocketbooks. The only way the welfare/warfare state is going to end... the only way we are going to prevent banksters from privatizing profits and socializing losses... is to reestablish gold as the basis of the world's money. That will never happen so long as gold rises to the sky, and then falls on its ass, over and over again.
At any rate, the Indians are going to start buying record amounts of gold again, and there is no reason for the statist/bankster alliance to try to stop the rise of gold, so long as it rises fast and hard. Will they prod prices up to $3,500 by 2016? Maybe. But, let's hope not. Let's hope, instead, that increased demand causes a slow steady rise, over many years, rather than a sudden bankster-inspired moon shot. Remember, if gold rises to dizzying heights too fast, it will be easy to shoot down.
Even if the eventually shot down price were to land its downward spiral at $1,900, it might make you rich, but still discredit the yellow metal. If gold reenters the financial system as the basis of money, it will be priced at something like $12,000 per ounce. But, if it continues moving up like lightning without such an anchor, it will inevitably collapse, do another moon shot, collapse, and so on and so forth, for ever and ever and ever. That will insure that it never gains enough credibility to return to the monetary system. It will also insure that the power to create and destroy money at will, and the natural extension of that power... to manipulate ALL markets at will, remains in the hands of the same corrupt crowd it is in now.