There are probably a number of things going on, not just one thing. I would expect that there is some central bank price manipulation. We know that this goes on, this is not speculation, it is actually disclosed in certain ways.
You know, whenever you are trying to solve a crime you say, �Who has the motive?�. The person with the greatest motive to keep the price of gold low is actually China, because they have the most to buy. So, people point the finger at the Fed, but you might suspect China, but also hedge funds are involved.
Traditionally hedge funds were not very involved in gold, they are now. Hedge funds don�t care if they trade gold or base ball cards, for them it is all about making money. And, they engage in manipulation. And, the enforcement side in the United States is very weak right now, so it�s almost an invitation for hedge funds to come in and play games.
So there are a number of things going on, some of them technical.
- Source:
This is an older video of Jim Rickards appearing on the Keiser Report. It is well worth viewing, since it looks like Jim's predication's have all come true.
"In the second half of the show, Max talks to Jim Rickards of Tangent Capital about the silver, gold, the dollar and quantitative easing."
- Source, Keiser Report:
http://maxkeiser.com/
"James Rickards, senior managing director at Tangent Capital, talks about the U.S. economy, investment in gold and global currencies. Rickards speaks with Sara Eisen on Bloomberg Television's Money Moves."
- Source, Bloomberg TV:
