Posted on July 30, 2015 by Martin Armstrong
There are still the gold promoters who claim they can prove that paper gold suppresses the gold price. If that were true, it would apply to all futures, and besides that fact, they have no problem when gold rallies in the futures market. If their theory were correct, then why buy gold? Give up and buy stocks.
“Paper gold” is the ONLY reason that gold is a viable market. Without a central clearing house, any commodity becomes illiquid. How do you price it? It becomes an art. Its value becomes a matter of opinion. You only ever hear how “paper gold” suppresses the gold price in a bear market. During bull markets, they love the futures markets. Could it be that these people are just hopelessly biased and desperate to try to explain why they are in a losing trade?
Others cry that rising demand caused the U.S. mint to stop production to keep up with the demand, meaning gold is suppressed by paper gold elaborately resorting to supply-demand theories. What they totally ignore is that at the peak in markets, it is the demand for futures because the bulk of people “trade” and do not want to physically take possession of gold. They trade on leverage. These promoters totally ignore that the concentration of capital into a single sector that creates the Phase Transition or the flight of capital that creates the Waterfall. They come up with elaborate theories to explain why they are wrong when in fact they do not understand that EVERYTHING rises and falls in value. It is not even that people fall out of love with gold; it is the simple fact that they can make more money elsewhere.
A $1,000 investment in gold in 1980 vs. a $1,000 investment in the Dow Jones Industrials shows that the latter made money and the former lost more than 50%, since adjusted for inflation gold must be $2300 to breakeven. Gold has not been in a real bull market, measured in international value terms. So all the hype, claims, and finger-pointing means absolutely nothing. This is not a religious cult like ISIS – it is a market. If you distrust the monetary system, fine. But be rational about the timing and how the world functions.
So, sorry. I totally disagree with gold promoters. Gold will have its time to rally and futures will be a key element in helping to create the next bull market. Just utter nonsense with more excuses, one after the other. Why are all futures markets not suppressed? Under this theory, the U.S. share market must be worth 10 times its current value for it must be suppressed by paper futures and ETFs.
The conspiracy theories are just astonishing. The latest claims state that the world will end in September:
Just what would such families gain by destroying the world economy? Their wealth is measured in the same currencies. This is why gold is not ready for prime time because nobody in their right mind wants to be associated with this stuff. Where is your tinfoil hat? This total fraud has to stop.Sunday, Sept. 13, 2015. The day when the elite (the Rothschilds, the Rockefellers, etc.) have scheduled a worldwide financial collapse to occur. They intend to accomplish this by initiating a sudden spike in interest rates, which will trigger an implosion in the global derivatives market, effectively rendering all currencies worthless – including the U.S. dollar. Subsequently, we will all awake on Monday, Sept. 14, 2015 to a permanently changed world.
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