How governments manipulate the gold price

padington

chewmylegoff wrote: »

Of course the gold market isn't clean. No market is clean and the physical commodity markets are murkier than most. But the idea that a single market participant (the US government) is rigging the market in the noddy way described in the post is ludicrous. It's up there with that stupid myth that all the market makers on the AiM market conspire together to screw retail investors.

So do you accept that a group of banks with state backing could be rigging the gold markets in some way or other, do you accept that is a possibility ?

chewmylegoff

padington wrote: »

So do you accept that a group of banks with state backing could be rigging the gold markets in some way or other, do you accept that is a possibility ?

Of course it's possible. Most things that the human mind can come up with are possible. Whether it is likely or not is a different matter. My view is that the "dirtiness" in all markets is far more likely to be a mixture of conflicting attempts by different participants to screw each other. The claims by some parties than previous metals are being suppressed are just part of the noise - they are an attempt by certain (not particularly influential or effective) parties to talk up the market by fooling retail investors into buying.

The idea that any western government is capable of routinely and repetitively rigging any highly liquid global market in the way suggested is implausible to me - they can't even arrange to increase VAT on pasties without a leak and a scandal. Furthermore there are some pretty high profile examples of governments taking on markets and losing miserably.

padington

And do you accept that the federal reserve together with the support of other national banks have massively distorted the global equities market ?

purch

Definately not.

Have you met anyone who works in the trading room of a Central Bank ??

They need help tying their laces :eek: the idea that any of them could manipulate anything is laughable

purch

These 'bloggers' who claim to know what is going on in the markets continually undermine their own argument by displaying their complete lack of knowledge of how the market works

The beauty of futures markets is that nobody knows who is actually buying or selling

The only thing you can be certain of, is that the trader in the pit isn't

I hardly ever used my own Banks pit trader to fill a trade. He was too busy filling trades for other traders anyway

If JP Morgan or anyone else wants to manipulate the price, the last thing you would see is JP Morgan or whoever actually in the pit selling. In fact the JP Morgan trader would probably be buying whilst filling other peoples orders

chewmylegoff

padington wrote: »

And do you accept that the federal reserve together with the support of other national banks have massively distorted the global equities market ?

In a word, no. QE by various countries has impacted on asset prices but its purpose is clearly not to rig the global equity markets.

Generali

chewmylegoff wrote: »

In a word, no. QE by various countries has impacted on asset prices but its purpose is clearly not to rig the global equity markets.

The purpose is, in part, to push people up into riskier asset classes. Cuts in interest rates are meant to do the same thing.

That's not the same thing as rigging markets IMHO, it's just monetary policy.

If the argument is that markets should set interest rates I have no problem with that: lets get rid of Central Banks entirely. There would be some practical difficulties but those could be dealt with by private Central Banks coming into existence (the Bank of England was a private entity from C17th until the 1940s).

michaels

Generali wrote: »

The purpose is, in part, to push people up into riskier asset classes. Cuts in interest rates are meant to do the same thing.

That's not the same thing as rigging markets IMHO, it's just monetary policy.

If the argument is that markets should set interest rates I have no problem with that: lets get rid of Central Banks entirely. There would be some practical difficulties but those could be dealt with by private Central Banks coming into existence (the Bank of England was a private entity from C17th until the 1940s).

OMG - you dare to mention 'private central banks' on a conspiracy thread...

Here's my conspiracy theory for the day - QE is nothing to do with monetary policy nd is actually all about finding a way to sell all those bonds for an otherwise unfinancible deficit.

I am definitely going to hedge this by going short Fiat (cars or currency it's all the same) and long lizards.

Generali

michaels wrote: »

OMG - you dare to mention 'private central banks' on a conspiracy thread...

The BoE was started as a privately owned entity (npw, despite the conspiracists it's 100% owned by the UK Government. The current French Central Bank was set up by a cabal of banks as a reward from Napoleon (I think) although I also think there was a predecessor set up around the Bourse.

michaels wrote: »

Here's my conspiracy theory for the day - QE is nothing to do with monetary policy nd is actually all about finding a way to sell all those bonds for an otherwise unfinancible deficit.

I think you might be on to something there. Whoda thunkit?

A Government using monetary policy to manipulate the yield curve and thus alter the cost of borrowing.

QE is printing money. That's not all it is but it is that nevertheless.

michaels wrote: »

I am definitely going to hedge this by going short Fiat (cars or currency it's all the same) and long lizards.

Who bloody knows?

Those nutters that write about lizards and Bilderberg and all that crap are going to stay poor for a simple reason: they're worried about the wrong thing!

Worry about how you're going to get rich and it might happen. Worry about how other people keep you poor and you will never make a bean.

wotsthat

Generali wrote: »

Those nutters that write about lizards and Bilderberg and all that crap are going to stay poor for a simple reason: they're worried about the wrong thing!

Plenty of them about..

http://www.dailymail.co.uk/news/article-2240239/Armageddon-houses-Brit-preppers-stockpiling-food-weapons-preparation-end-world.html