It is staggering to think what that might mean to the price of gold and silver if we were to go back to a system of backing the worthless fiat currency once more with these precious metals.We live in a society where people think it is the norm to be in debt and to get government handouts for all sorts of reasons. Where does that leave us when the present financial system collapses as many people think is inevitable.
What has happened for many years is the fact that private banks have conspired for almost 100 years to drive the price of gold down. This is accomplished by selling gold into the market at key times to manage the price. This practice is known as "dishoarding" and is not so much a gold bug conspiracy as it is a matter of historical record. Their goal? To diminish the importance of gold in the eyes of the common man to the point where the common man no longer realizes that gold and silver are ultimately the only true forms of "money."
Futures contracts are generally considered one of the most speculative arenas in the investment marketplace and together with gold eft's could be a contributing factor to the price manipulation. The investor's exposure to the market is leveraged and the moves both up and down are greatly exaggerated. Something like 9 out of 10 investors who enter the futures market come away losers. There is no actual physical gold to back these instruments. For someone looking to hedge his or her portfolio against economic and financial risk, this is a poor substitute for owning the metal itself.
The only safe bet for the average person is to buy physical gold and silver. The demand for silver is even greater as it has a great deal of industrial uses and the amount available in the world is very small. That is why the silver will outperform gold in the long run.
What has happened for many years is the fact that private banks have conspired for almost 100 years to drive the price of gold down. This is accomplished by selling gold into the market at key times to manage the price. This practice is known as "dishoarding" and is not so much a gold bug conspiracy as it is a matter of historical record. Their goal? To diminish the importance of gold in the eyes of the common man to the point where the common man no longer realizes that gold and silver are ultimately the only true forms of "money."
Futures contracts are generally considered one of the most speculative arenas in the investment marketplace and together with gold eft's could be a contributing factor to the price manipulation. The investor's exposure to the market is leveraged and the moves both up and down are greatly exaggerated. Something like 9 out of 10 investors who enter the futures market come away losers. There is no actual physical gold to back these instruments. For someone looking to hedge his or her portfolio against economic and financial risk, this is a poor substitute for owning the metal itself.
The only safe bet for the average person is to buy physical gold and silver. The demand for silver is even greater as it has a great deal of industrial uses and the amount available in the world is very small. That is why the silver will outperform gold in the long run.
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