Are low gold prices being faked?

This writer seems to think there is a disconnect between the quoted gold price and the "real" gold price. This is because most "buyers" of gold don't take actual physical posession of the metal. According to the article, it costs significantly more than the "official" price these days to actually acquire physical, in-your-hand gold.

Thus the "official prices" are, according to this theory, merely another artifical paper-shuffle scam being manipulated by the Fed and the Treasury to prop up rapidly-disintegrating confidence in paper currency.

The article:
www.marketoracle.co.uk...

Meanwhile, if the article is to be believed, people who actually traffic in physical gold are ignoring the "official" prices and buying and selling much higher...actually using EBAY to price the gold because its a more reliable indicator of the real price these days than the manipulated "official" figures!

Don't know if its true but its pretty scary. Any thoughts?

It is true, and I don't think it is scary. I am one that "traffics" in "real gold". I don't understand a fool that thinks they own gold but has nothing they can hold in their hand. That's nothing more then a paper note. If the world economy falls, or maybe it is right to say when, those with paper notes of gold ownership will have toliet paper while those of us with physical gold have something to deal with.

I don't think there is any consparcy here. If you're fool enough to think you own gold because someone that is holding said gold is willing to give you a piece of paper, you should get a cheeper price.



As for those of us that want to hold what we own, we don't mind the actual price of Gold. As for "actual price", anything from a pile of dog crap to a rare perfect diamond is only worth what someone is willing to pay for it.

You missed the story where the US government mint has stopped selling gold coins.

I gave my brother a gram of gold for his birthday. I told him wealth isn't measured in papers, but when you hold gold, you could get in a time machine, you could go to sleep for thousands of years, the world could end, no matter what happens you'll have something of value.

Speculative gold prices are just that, paper guesses.

Good reading for a gold skeptic like me.


The reason for the fall is that gold has ceased to be a currency and began to be a commodity that relies on scarcity as a major input of its notional value.

The problem is many people still regard it as a kind of universal currency.
That would be impossible in a global economy valued at over 100 TRILLION $US in fiat money.

Simply put: There isn't enough physical gold in the world for participants to exchange their fiat dollars, so they look elswhere for profits, like the largest capital market in the world: the foreign exchange (forex) which turns over approx. 1.3 Trillion evry twenty four hours!

I worked in the mining industry for 20 years.
Paper gold is not real.

I am waiting for the day a gold holding company that holds the gold to back paper gold just disappears with all the gold and leaves there clients holding worthless paper.

Its going to happen.
And a lot of people will lose a lot of money.

The other problem i see with paper gold is the government can sieze the books of the company holding the gold and issuing you a paper certificate.
And take the gold and pay you whatever the government wanted to for your paper gold. because it would be redeemable only through them.

With real gold you could take it to canada or another country and redeem it if the government in the US played games.

i know people that hold real gold to protect there little money.
these people are on disablity and can only have a set amount of worth in the bank or property before the government starts cutting there checks.
gold is a way they can hide what they have from the government without the government finding out.

i hold gold just for this reason.
i am 57 years old on disablity.
when i get to 63 i can go on SS and unhide my money.

COMEX gold is as worthwhile as most of those derivatives which are AKA; toxic paper


being that the price of gold & PM has long been manipulated lower than its real value... it has come to light as of a news blurb on 3 Dec 08
that major miners are going to radically cut back on production because of the low price of the metals.
This going forward act of limited production of gold will not cause the price per ounce to rise as one might expect...


the fear & panic which is driving the 'underground' exchange of gold,
on places like E-bay, will continue the upward price spiral of gold/PM-
until gold is fetching $1,200.oz. while structured gold markets remain around $800-$850.oz.

any dude with less than....$1million, should not expect to have gold delivered at all, much less than months later.
the squeeze has been going on for a long time... to lead the investors into stock equities (especially now that the 'financial sector' stocks are so cheap) so as to keep up the buy-sell madness going, which provides a handsome salary for hundreds-of-thousands in the financial industry.


go-figure

Originally posted by silent thunder
This writer seems to think there is a disconnect between the quoted gold price and the "real" gold price. This is because most "buyers" of gold don't take actual physical posession of the metal. According to the article, it costs significantly more than the "official" price these days to actually acquire physical, in-your-hand gold.

it appears that the industry players as a whole are jacking up the prices $60 to $80 per ounce higher than the listed price. US eagles being sold by the mint appear completely disconnected from commodity gold prices.

Meanwhile, if the article is to be believed, people who actually traffic in physical gold are ignoring the "official" prices and buying and selling much higher...actually using EBAY to price the gold because its a more reliable indicator of the real price these days than the manipulated "official" figures!

Don't know if its true but its pretty scary. Any thoughts?

The competition on Ebay frequently results in inflated prices well beyond a product's market value. Also, when people quit using the auction, Ebay drops their negative ratings against inadequate and dishonest vendors. This results in a non-functional feedback system.

It would be folly to rate the value of any goods or services thru this auction.