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Gold Price Manipulation
Pinnacle Digest writes: In the article linked below, written by Gary Tanashian, two important components to the gold market are discussed. Tanashian explains the severe and almost blatant manipulation in the gold market right now, which has led many retail investors to sell. Tanashian also reviews the gold to oil ratio (GOR) and what it means for future prices in gold stocks.
Tanashian goes back to a reference Bernanke made when he stated that he would control treasury yield curves. In other words: manipulate. Would it be so far fetched to assume the price of gold isn’t being manipulated before our very eyes? At Pinnacle we are strong believers that gold is being manipulated.
Up until three months ago, gold was establishing itself as an alternative form of currency amongst everyday people (moreso in Asian countries). Naturally, this scared the central bankers who controlled the fiat currencies of the world - and no doubt scared the pants off Bernanke.
Bernanke needs Treasury demand to remain strong, at next to nothing rates, or else it could be game over. If demand for treasuries lessens and shifts to gold, or if rates rise, then the US is in severe trouble and risks its financial solvency.
The Gold to Oil Ratio and its Impact on Gold Stocks
The gold to oil ratio, or GOR, is a very important component to review when investing in gold stocks. The tighter the ratio, the better it is for gold miners. But when there is a wide gap in the GOR, in favor of higher oil prices, that can put significant cost pressure on the miners bottom line. In this article linked below, Tanashian explains the relevance of GOR moving into the second half of 2012.
Click here to read Gary Tanashian’s article.