Take Advantage of The Current Rising Price Of Gold Now

We often speak of gold being affected by geopolitical risks and failing economies however sometimes, the price is simply monetary policies and the actions of central banks push the price of gold high.



Since the recession of 2008, the US has been printing millions of dollars in a bid to resuscitate the housing and stock markets that were in trouble. This printing of surplus currency pushes inflation high which pushes the price of gold and other precious metals high.

In 2008, the price of gold was about $850 an ounce. Right now the value of the US dollar in a lot of countries is at its lowest. But gold seems to be making gains of at least $30. Some people believe that that is the most that gold will gain this year, meaning that people who have gold should be selling right now before it takes a plunge.

Central banks have been buying gold on an unprecedented level however but they have been selling off paper-contracts as well. This is something smaller investment firms are doing. In previous years, sharp drops in the price of gold has been preceded by paper-contract sell-offs.

Are these scare tactics or just a way for central banks to manipulate the price of gold?

Banks have a bad reputation of manipulating the price gold for their own ends. There are researchers who believe central banks have been manipulating the price of gold since 1993. Of course, this is something that is not beneath central banks. If they can manipulate the price of gold they stand to make a ton of money. Last year the European Commission decided to fine five major banks for rigging the forex market. These banks are said to have been rigging 11 currencies including the U.S dollar, The Euro, The British Pound, The Japanese Yen, and other currencies. The banks that were fined include JP Morgan, Citigroup, the Royal Bank of Scotland, Barclays Bank and MUFG Bank from Japan. These banks were fined 1.07 billion euros.

Central banks would not want the price of gold to rise too quickly so, they suppress gold. If they do, it could send the price of the dollar careening. The U.S dollar is already very fragile and anything to upset it could have serious ramifications. This is one reason that gold bugs attribute to why the price hasn’t reached the $2,000 mark that so many were predicting it would.

Market watchers believe that the manipulation of gold could have begun as early as 2001. Gold Price fixing or manipulation is not a conspiracy theory. In 2014 Barclays was actually fined $44 million for allowing traders to manipulate the U.S. precious metals markets. This resulted in the infamous “flash crash” when the precious metal fell by $30/ounce in a minute. The price fell by 2.1% sparking the trade of over 8,000 contracts.  

The point is, there is no right or wrong time to sell gold Brisbane. If the price can be manipulated, you could end up losing out on an opportunity if you have to wait for the price to pick up. The people lost out in the flash crash. Could another Flash crash happen? Is gold being manipulated and to what extent? Gold rallied between November 2018 and February 2019 peaking at $1,343. This should have pushed bullion-backed SPDR Gold shares to climb but they didn’t. Instead three days before this peak, the GLD holdings began to fall and by March 4, the EFT had lost 57.8 metric tonnes. The GLD at that point was the second biggest gold EFT in the world. So loosing that much gold would surely impact the price of gold and it did because soon after, the price fell to about $1,300.

Recently the Bank of International Settlements (BIS) placed 56 metric tons of gold in the market. Where does this amount of gold come from, could it be the “Lost” GLD gold? Speculators think so. The moral of the story: gold analysts have been wrong on so many occasions, everything you read about the gold market lies only on the surface deeper things could be brewing and if you are not a professional gold trader. $1,578 might just the best that gold will be for a while. Unless you have a crystal ball, you have no way of knowing what the price will be next week. Find a buyer you can sell gold Brisbane to.
Take Advantage of The Current Rising Price Of Gold Now Take Advantage of The Current Rising Price Of Gold Now Reviewed by farahatelier on February 12, 2020 Rating: 5

2 comments:

Powered by Blogger.