So why manipulate gold? If you saw the Mexican wave video from yesterday, you can easily relate it to gold. The wave just needs a good start in order to complete a whole round of the stadium. The same thing applies for gold. It just needs the correct amount of price increase, to spread enough panic and start an avalanche.
Everyone has a connection in his head between gold and safety. We believe that gold is a safe boat investment and when its’ price increase, an alarm rings in our head, meaning there is a big crisis on its way and people run to buy the precious metal to secure their money! Of course with the current economic uncertainty, that bell would be a disaster! Just imagine a small portion of the population, withdrawing their deposits and buying bullion coins! It would have a huge impact on the banks as others would mimic this behavior! Human psychology can’t be controlled easily and is a factor to be taken always under consideration in economics. So we only need a fireman when things go out of control and that is manipulation! More info about why we have a manipulation in prices, you can see here: link1, link2, link3
Now when will the price sky rocket? So far we saw two reasons why it has been caped. For the price to skyrocket, uncertainty in global scale should be massive! When we see China with 4% growth or France and Germany loosing AAA status or USA printing 10 more trillion dollars, well this would be an excellent time to buy gold! Until of these happen, unless you leave in a country with big economic problems like Greece where the danger is imminent, I wouldn’t suggest to invest in gold. First of all you don’t need it yet and second the dollar will increase its value in the next two months (since Europe does everything to destroy herself) meaning price of gold will decline.
I will say it again, don't invest in gold when there are no clowds in the sky, you don't need to waste your money! Better go and buy a burger, it won't shine but it will be hell more tasty!
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