Traders: Is the price of gold being manipulated by the Feds?

I believe it is. But now that we have a new Chairman of the Federal Reseerve Board, the practice of using (illegal) Gold Swaps with foreign countries is going to stop and gold prices will fall in line with historical action. Coupled with rising inflation and US interest rates, the nominal price of gold will rise to over $2000 an ounce. Assuming all of the above is true and the spot price of gold will reach its peak in May of 2008, what is the best way to make as much money as possible with the least risk?

Public Comments

1. I'd rather think it something of the opposite. The current rise of the gold price is do to the inflation being much larger than the official numbers indicate. As for you opinion there are so many players (mines and banks) in the gold market that the American holdings and the Fed's influence are small, too small to make manipulating the gold price possible and worthwhile. However, I am also investing in gold mines and gold trackers, because I think the inflation is rising and we haven't seen the end yet. 2000$/ounce? We have never seen more than 800$/ounce in the past. I think you are too optimistic. But if you are really sure of 2000$ in May 2008 than the appropiate gold call option is the way to go.
2. There are several ways: 1. I've noticed a great deal of the gold spot price being manipulated due to that streetracks Gold shares (GLD). That is a place where anyone can get in...hedge funds included. There are some other i-share funds out there for gold, silver, and platinum, but they really weren't advertised enough to get investors excited 2. One of the least risky ways-IMHO-is to physically invest in gold (bullion, coins, jewelry, etc.) You'll always know that it will be there, and it can also act as something to be kept in your family traditions generation upon generation. 3. I would consider a select few gold stocks to be investing to--the only one's i would be willing to buy are RTP, AAUK, and AUY. Gold has its risks, but it will always be there in times of trouble. IMHO, its something that is pushed around too easily, and will only get worse. Maybe Mr. Ben. will teach us the new meaning of the phrase---inverted yield curve----one can only hope. LOL! P.S. full discalimer--I own gold coins that are issued by the united states government each year. Happy Trading -Paul
3. 1/ GATA beleives it was/is ! In a larger context, I agree. 2/ I am not sure what the eventual price in $USD will be. HOWEVER, price in $USD might not be a good indicator.You may wish to use another currency. The Gold/Dollar Index has hinted to further strength in the $USD Gold Cash Price. 3/ To absord all the liquidity / rationalize all the paper curreny in circulation, the eventual crossover price I have heard quoted was 50% higher and that was 5 yrs ago I last heard it. 4/ Questions exist as to the "real" quantity of gold acutally above ground. The potential existence of greater amounts than ever officially acknowledged, entering the world gold pool thru "grey" channels makes the potential for mischief (manipulation) significant IMHO. 5/ As to leveraging yourself for this eventually, junior precious metal stocks on the verge of development and production seem a good candidate. Lacking that, one might try a "depositary-like" stock, as CEF, to try to leverage moves. Caution here, as timing will be everything. Good Luck
4. I also think $2000.00 per ounce is a little unreasonable: Some points to consider. -We haved currently been in a commodities bubble for about 56 months. That makes it one of the longest commodity bubbles in history (previous cases lasted about 26-28 months.) It will be interesting to see if the bubble will last. Even if it does, it will need to slow down to catch its breath. -Inflation has a strong corolation with the price of gold. Bernanke recently stated that the consumer-price index was 2.6% higher than it was last year, an uncomfortable position for Bernanke. The Fed meets later this month and if they tighten rates again, the price may rise. Once rates drop, it will diminish demand on commodities. -Keep in mind that many mining operations in southeast asia have seen quite a bit of opposition form locals and environmental groups. This could prove to be a challenge for some mining firms. Also, as exploration continues and more deposits are found gold and other commodities may see a drop in price. So i would predict that gold and other commodities are heading up, but don't expect gold to hit $2000/ounce. As interest rates go up it will crimp economic growth leading to decreased inflation, plus, exploration will discover new deposits of oil and other metals and eventually the gold/commodities bubble will burst.
5. Diversify your money. Go 35% gold 35% euro and 30% in utilities and blue chip essential stocks. Also check out foriegn bank stocks with high yield dividends and medical REITs. NBG for the foriegn bank and MPW for the REIT I like a lot high yield div. solid business.
6. Hello, If you remember, in your last log, you asked people this question: Why do people think it is okay to be rude? And this is the irrational and racist answer you gave to my simple question of why U.S Media is more sympathy toward Israel rather than show the fact from both side?: Your Answer was: Because the rest of the world is willing to lay down and die for the Islamic scum that's why. The French would rather die a pretty corpse than kick the crap out of you Muslims. The US is going to kick you in the teeth, put our boots up your a$$es and march you bastards back to Tehran where you belong. I do not want to criticize you, since we respond to others based on our level of awareness. I only hope that someday you expand your racist view and be more rational. And for your information, I am from Iran and I am proud to say that I am American-Iranian and I do care about America since I've been here for 14 years and did my best to be a productive member of society and contribute to public as an engineer. I only want to ask people like you to not follow the crowd and believe the media blindly. Always question and think about what you hear and see, since there is two side to the story and we only hear one side of it for most part. Have a good day Miss. Ali ayavaria@yahoo.com
7. I don't know if it is all that complex. For a start, Gold is used as a safe haven when markets start to correct themselves, oil takes a hike upward, and property isn't going well.. all of these push Gold up. It's a global issue, not just what the US Feds think. They have nothing to do with demand from China. If you want to make money, and you believe in your own predictions, just buy Gold futures..