Weekly Wealth Digest New

Dear Member,

Market manipulation is visible in all investments; the very currency we use to price our investments in is openly manipulated. Interest rate fixing, bond purchases, and liquidity injections are the norm these days, but this is a very obvious manipulation of the price of our money.

Gold, which I believe is also tied to the manipulation of the dollar itself, is something that is fairly easy to see and explain.

Here is How Gold Manipulation Works

  1. The Big Dumps — central planners — for years have been dumping large amounts of gold at the worst possible times. What I mean is when the markets are least liquid, such as on a holiday evening, there have been some very notable sellers of gold unloading large volumes in a matter of minutes; sometimes dumping orders that are even larger than the annual mine supply.[su_spacer size=”10″]Dumping gold, either through real physical gold or digital gold (paper gold), is the easiest and most identifiable manipulation in the gold market.[su_spacer size=”10″]The honest truth on these daily attacks is that no one with money would sell large amounts of gold exactly when they will get the worst price, which leads me to believe this is being done by governments and central banks.[su_spacer size=”10″]
  2. COMEX: Here is where the majority of gold trades, where for every few hundred ounces of gold, there is only one physical ounce to support that trade.[su_spacer size=”10″]Electronic trading on the COMEX, where traders are leveraged, can wreak all kinds of havoc. From stop losses to margin hikes, the COMEX has been an easy place for gold manipulators to beat the price down, as well as slow any real rise in the gold price.[su_spacer size=”10″]
  3. Gold storage: gold leasing and unallocated accounts unfortunately is the norm in the gold industry. There is actually a very small amount of gold that is delivered to its owners. Most of it is stored in bank vaults. Just like your $1 deposit can turn into $9 of lending for the bank, your gold is treated the same way, being legally leased out to others. [su_spacer size=”10″]And with unallocated accounts, who knows how much actual physical gold there really is? Everbank, who I actually really like as a bank, won’t even tell you where your gold is stored if you use their storage. Policies like these are highly suspect.

Why Manipulate Gold?

For this answer, I always refer back to former Federal Reserve chairman Paul Volcker’s response in the early 1980s when asked about his regrets during a decade of double-digit inflation. He said something to the effect of “we didn’t control the gold price.”

Congressman Paul recounts a story about when he sat down for lunch with Volcker in the late 70s, saying that Volcker was obsessed with the gold price, constantly receiving updates from his staff.

How Does This Play Into Our Strategy?

It doesn’t; we buy gold for insurance, savings and asset privacy. The fact that it is manipulated down actually offers up a long-term opportunity, such that that you will always be able to buy gold for less than it’s worth, up until the day they lose control, at which point it will go up like a beach ball under water.

Gold manipulation should not prevent you from owning gold. If anything, it should help you understand clearly how important its role is as the one form of true money.

Best Regards,
Daniel Ameduri

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Weekly Wealth Digest Video Episode 49

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