Is ‘$1,000/oz Gold’ Foretelling or Fantasy?

Gold is currently facing its most-severe, downward price “pressure” (i.e. price-manipulation) since 2013. Not surprisingly; this has led to the anti-gold bankers (and their media sycophants) making assorted, dire “predictions” for the price of gold, including today’s headline:

Goldman Sachs Calls For $1,000 Gold

In recent years; such a headline would have elicited nothing but laughter from informed investors (and observers) of this market. The meteoric rise in the price of the gold had left the $1,000-level several years behind us in the rear-view mirror. More importantly; the reasons for that rise in price (i.e. the “fundamentals” of the gold market) have only gotten stronger in recent years, rather than weaker.

Beyond even that; in the past two years, as the price of gold has been manipulated back below the $1,500-level, the bankers have clearly been afraid to manipulate the price anywhere near $1,000. Indeed, since roughly the end of 2013, the “line in the sand” had been $1,200/oz.

As regular readers know; with our so-called markets now literally run by computerized trading algorithms (which now account for roughly 75% of trading in most markets), the One Bank can march prices in any market – and every market – to almost any number it desires. The bankers could march the price of gold all the way back below $300/oz, back where it was at the beginning of the millennium. But doing so has consequences.

For every dollar lower the One Bank manipulates the price of gold; the imbalance between anemic supply and rabid demand gets even worse (from the perspective of the banksters). Worse still, this supply-deficit is an exponential function, meaning that the supply-deficit grows exponentially as the price is manipulated lower.

Previously, any time the price dipped below $1,200/oz, the depletion of inventories reached a rate which was intolerable to this Crime Syndicate. Yet here we sit today, with the price of gold below $1,100/oz, and the banksters – as a chorus – predicting that “the worst is yet to come.”

This brings us to India. Traditionally the world’s most rabid “consumers” (hoarders) of gold; it is the price-conscious buyers of India, in particular, whose gold-buying would soar any/every time the banksters pushed the price of gold below $1,200.

The One Bank tried to blackmail India’s government into instituting a near-total embargo on gold imports. The blackmail succeeded, but the embargo backfired – badly. Gold smuggling replaced much of the previous imports. Silver demand exploded. And a thriving blackmarket for gold sprang up, with its own real-world price for gold.

The One Bank rescinded its embargo, but “something” had to be done about India, or the $1,200-level would be an absolute floor for the price of gold. Then the banksters hatched a scheme which was diabolical in its simplicity. They would trick the people of India into handing their gold (effectively) to the banksters.

The English translation of this scam is the “gold monetization scheme” as even the bankers themselves couldn’t think of any more legitimate-sounding terminology for this massive theft than a “scheme”. The (surface) mechanics of the scam are simple. Indians “deposit” their gold with India’s (corrupt) government. It “lends” this gold to India’s jewellery-makers, who then “pay interest” on this deposited gold back to the Chumps.

The fact that this is an obvious fraud should be immediately apparent to any/all Western readers. All they need to do is recall a tautology constantly hurled at us by the bankers, to try to discourage us from accumulating gold (or silver).

Gold generates no income.

It is a hard asset. It preserves wealth, but does not multiply it. So how can India’s jewellers (or anyone else) “pay interest” on something that generates no income. Where does the interest come from?