Selling gold?

Not sure if this belongs under Web-Related Conspiracies or not....

At any rate, I saw this commercial where this company buys your gold, and people on it were bragging how they got $1000, etc.

I think I'm smelling a rat here. Wouldn't one want to hang on to one's gold? Why the sudden interest on the part of someone to buy it up?

I thik there are two factors are behind this.

1) Record personal debt levels... people who need the cash don't mind selling now.

2) The price of gold is rumoured to be rigged at an artificially low price and considering current economic reality it seems poised to go through the roof.
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Originally posted by Gools
I thik there are two factors are behind this.

1) Record personal debt levels... people who need the cash don't mind selling now.

2) The price of gold is rumoured to be rigged at an artificially low price and considering current economic reality it seems poised to go through the roof.
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The basis of the conspiracy theory is that huge amounts of gold have been sold and borrowed on the carry trade, and that the central banks have realised a little late that their economists might be wrong. As, like the Yen before, the gold price rises, a whole raft of LTCM types will fall out of the derivatives markets, unable to return the gold they have borrowed because they can't afford to buy it back at these rising prices. The resulting default could bring down the international financial system, so the world's financial institutions have conspired to hold down the price of gold.

The conspiracy theorists are gold 'bugs'. Their core belief is that gold is the king of monetary assets. Their additional belief is that institutions like the Fed, the IMF, the BIS, the Exchange Stabilisation Fund, the Bundesbank, the European Central Bank, the National Bank of Switzerland, and the Bank of England are conspiring to hold down the price of gold in order to prevent the circumstances where constituents of the international financial scene - particularly the customers of JP Morgan Chase, Goldman Sachs, Deutsche Bank and Credit Suisse - implode under losses arising from 8,000 to 20,000 tonnes of gold carry trades. Were such an implosion to start it is clear the gold price would go into the stratosphere.

Source

Author goes on to debunk(more or less) the conspiracy theory, but adds price manipulation is most probably going on. If the conspiracy is real, somebody "on the inside" would be wise to buy as much as possible before the gold price goes into the 'stratosphere'.

Originally posted by Amethyst
Not sure if this belongs under Web-Related Conspiracies or not....

At any rate, I saw this commercial where this company buys your gold, and people on it were bragging how they got $1000, etc.

I think I'm smelling a rat here. Wouldn't one want to hang on to one's gold? Why the sudden interest on the part of someone to buy it up?

I'll happily buy your gold too if I can get it below market value. If you are thinking of buying gold, you might want to look into high quality antique European coins. You can get brilliant uncirculated 100+ year old coins for slightly more than melt value. Similar quality US coins sell for several multiples of melt value.

Personally, I don't subscribe to the "artificial price theory," having been a holder and trader in gold for almost 20 years now.

There is an international market with multiple producers, from the whole political spectrum. Oz, South Africa and South America are production leaders, whereas SE Asia are the largest consumers.

Gold has growing industrial and information (read strategic) uses. If one country, or even a group of states, wants to try and control the price, they will pay dearly for the privilege. DeGaulle's attempt to do so, and thus return France to a gold standard, helped wreck the financial world order called "Breton Woods." And he failed for the simple reason that he was trying to corner a market that is bigger than any single nation, or group of nations.

You can buy gold in bulk in practically any city in the US, with no records kept, and purely a cash transaction. I have never had any limits put on my purchases, and have bought more than a pound in one transaction.

Generally, the more undeveloped a nation, the more its people value gold. For this reason, developing nations have private assest that frequently rival or surpass that of Europe or the US.

The guy is buying gold because he is giving the seller probably $120 an ounce. If you like that price, I will gladly match it for you!!!!