Are Foreign Banks Manipulating Gold Prices?

foreign banks, currency manipulation, gold manipulation, central banks, fedQ:Is gold being manipulated by foreign banks?

A: Everybody should be buying gold and silver right now. The reason I say this is because they are the only investments that make any sense, given the current instability and rising demand. Typically we buy an investment if we think it’s going to rise in value or produce some type of cash flow. Gold and silver don’t produce cash flow, however, the price is certainly climbing, thanks in part to demand from foreign banks.

It comes down to simple supply and demand. Central banks like the Federal Reserve, European Central Bank, and the Japanese central bank are all accumulating gold. The reason is because they don’t trust other assets, including the U.S. dollar and other currencies. Since there’s a lot of buying going on, there is also a lot of pressure on the market to adjust the price of gold upwards.

When there is more competition for the same item, prices rise. Right now there is more and more demand. Even the Chinese government is encouraging its citizens to buy gold and silver and hold it, themselves. There are a whole lot of Chinese people listening to their government. If you have one billion people thinking about buying a little bit of gold and a little bit of silver, that creates a lot of demand. Even if only a fraction of the population is able to buy a minimal amount per person, that is still millions of ounces. So, overall, I think in the next few years we will see a massive movement up in the price of gold, especially due to the influence of foreign governments and their central banks.