As governments engage in a campaign to discredit the value of gold as money and allow the artificial manipulation of the commodities markets, it is no wonder that investors with light stomach’s are running away from the gold metal.
After all, if you are looking at gold simply as a way to make money and the market is rigged such that Big Banks are allowed to sell gold that they don’t even own to artificially drive the price down, who could blame you?
Don’t believe this situation exists? It does and it is called naked shorting.
Big banks like Deutsche Bank, HSBC holdings Plc, Bank of Nova Scotia and UBS AG have been manipulating the gold and silver market for years. Evidence of this can be found in Deutsche Bank’s settlement of lawsuit admitting to manipulating the market right here.
It is no wonder that with all of the price volatility as a result of this, small investors like you and me would run away from gold.
The interesting thing about this situation is that while the investors are fleeing gold, the central banks can’t buy it fast enough.
Traditionally, gold has been considered a poor investment that did not produce a return. When I say return, I mean to say it did not produce interest.
The tide is been turning with that line of thought in a negative interest-rate environment.
The central bankers have come to realize that gold holds it’s value as a store of wealth and that it always will. As a result, they have been buying it up hand over fist while at the same time being able to drive the price down through naked shortening.
Take the Central Bankers lead and buy physical gold and silver today.