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Please watch the following video (short, and very worthwhile) on the two recent examples of gold manipulation.  It is a must-see for anyone who wishes to understand why these “waterfall” drops occur.

Are Gold Prices Manipulated? – RESET: Special Edition w/ Vince Lanci
The other night, I had a discussion on gold with someone I know who lives in my building.  I brought up several points that he was unaware of.  Later that evening, I decided to send him a “visual recap” of what we had discussed. I wanted to be sure that he understood the basic thoughts that I had presented to him.  Here is what I sent to him and it may be helpful to many of you as well.


I have put this information together for you – all of it with accompanying charts and data – to make it easier for you to understand why I am so certain about the things I mentioned to you last night.  My views are not based on my “feelings” but they are based on facts that make it mathematically impossible to change the outcome.

No one wants to lose a significant portion of the wealth they have worked hard to accumulate.  Wealth measured in dollars is a no-win situation.

It is generally accepted that anywhere from 12% to 20% of one’s net worth, set aside in gold, will protect the purchasing power of the entire portfolio.  If the dollar falls, the gold will rise high enough to compensate for the losses in the rest of the portfolio.  If the dollar holds its value, the gold acts merely as an “insurance policy” that was never needed.

The difference between an ordinary insurance policy and gold is that in the case of gold, you can sell it later on, if you wish, and the insurance if offered you was free, or actually increased in value, whereas an ordinary insurance policy costs you money every year and you get nothing back if you never use it.

Take a look at the following, think about it – and my comments to you last night will make more sense to you.

First, here is a simple chart that is very important.  It gives you a visual of the “solution” to the debt problem that Congress is arguing about.  It shows the impossibility of the situation.  The only way to survive this is not through tax increases and spending cuts.  The chart shows how meaningless tax increases are toward solving the problem.  The only solution, and it is really not a solution at all, is for the Federal Reserve to keep creating new dollars at the rate of over one trillion a year, or whatever amount that is needed to keep the banks, the markets and the economy from sinking.  In the end, all that policy will accomplish is to buy (a little) time, not fix the problem.  It makes the problem worse.

The dollar will be the big loser and precious metals the big winner.

Next up is a chart of the creation of dollars relative to the amount of gold.  It also mirrors gold’s rise against the dollar over the same time frame.

The Swiss franc is generally considered the best currency in the world.  How does gold stack up against the SFR?  Gold is a better store of value.

How does gold stack up against oil?

Gold is better.

Here is an overview of where the dollar has been and where it is projected to go.  The SGS Alternative blue dotted line represents the ACTUAL inflation, the real numbers, calculated the same way inflation was in the 1970s under

President Carter.

Please note in the above table that gold and the Swiss franc were held constant by the gold standard versus coins in 1914 and 1933.  The data are from the Federal Reserve Board, the Bureau of Labor Statistics, Kitco and from SGS data and calculations.  The magnitude of the loss in the U.S. dollar’s purchasing in the span of almost one century could be repeated in the span of less than 12 months starting in the next year or so.  Again, fiscal and monetary malfeasance by the federal government and the Federal Reserve are to blame.

The table showing the loss of purchasing power of the U.S. dollar against various inflation measures and assets has been expanded to include silver in the assets, as well as to include January 2002 as a base, showing the loss of purchasing power in just the last ten years.  With most of the CPI reporting gimmicks in place by 2001, the differential between the CPI and SGS is close to maximum.

-John Williams, No. 414: Hyperinflation Special Report 2012

And finally, here is the Adjusted Monetary Base, the Fed’s assets all purchased with money they created out of thin air.  The dollar has NO future as a STORE OF VALUE.  That is what gold is showing with its increasing price since 2002.  You can see on the chart that this is also the same time when the Fed started increasing its monetary base.