While reading a reader’s comment I came across someone who said, “You don’t buy Gold or Silver because they are manipulated.” Let’s look at this from a couple of standpoints. First, maybe they mean that you “shouldn’t” buy metals because they are price manipulated. Or maybe they meant that “manipulation” is a reason not to buy. Conversely, maybe what they meant was that you “shouldn’t play in a rigged casino.” I can only guess because the comment was stand alone at the bottom of an article debating “manipulation.”
First off, I have zero thoughts that gold (and silver) are not manipulated as I have written many many times before. There is reason or motive for price suppression, there is the ability and tools to do so, there is obvious price action and “tons” (pun intended) of anecdotal (and paper trail) evidence proving the manipulation. I will assume that if you are reading this piece that you know about the manipulation and price suppression that has gone on for more years than I have fingers and toes to count with. If you don’t know this or disagree with it, please do some real research for yourself and don’t bother sending me any irritating e-mails as you will only be exposing either your ignorance or lack of being genuine.
That said, “manipulation” is EXACTLY the reason WHY you should purchase the precious metals! If prices are lower (far and multiples lower) than where they would be if left alone to free markets and Mother Nature then you can acquire assets at “subsidized” prices. For example, if a gas station were to offer gasoline for 29.9 cents per gallon you would buy all you could right? I personally would ask the station owner if he made a mistake because I don’t like to see anyone get “beat” but if the owner told me, “No, the price is correct and in fact a market price,” then I would fill up all of my cars and probably install a holding tank in my backyard to be filled. My point is this, if you know that something is too cheap then you will purchase as much of it as you can… which is exactly what people the world over are doing and have created a demand which is overwhelming physical supply.
Then you have another question to answer. Should you not buy the metals “because” they are manipulated and basically have sign hanging over the door “don’t go there?” The answer I think is pretty obvious. NOTHING can be priced incorrectly forever no matter WHO it is behind the mispricing. One day, sooner or later (I personally believe that it is “later” already and maybe even 1 minute past midnight) the market forces will overwhelm the manipulation and as my Dad used to say, “Water will seek its own level and cream rises to the top.” In other words, one day you will be paid for seeing through the smokescreen.
I must say that I understand the frustration of many readers and clients at the price action and “how” it has been done. People are pissed because gold should be higher in fiat price yet it’s not. Human nature is such that even if you KNOW something, the reasons behind it and how it’s done… if you are shown a “reality” that doesn’t add up humans tend to forget what they actually KNOW. Human nature has also evolved into a “I want it and I want it now” culture. Truth doesn’t work like this. The truth is always the truth no matter what common thought or perception is and no matter what your “rulers” want you to believe nor how long the misconception prevails.
I don’t want to get too long winded here so I’ll wrap up with this. “Manipulation” lower of the price of any asset is THE REASON and EVERY REASON to buy it. No matter from what angle you are looking, the fact that gold and silver are price suppressed is every and all reasons why you need to own them. They are worth more than you are being “told.” There is a reason why you are being told that they are priced where they are. There are multiple reasons why you have and are being discouraged to own silver and gold. Understand this train of thought and relax. The manipulators will ultimately destroy themselves through illogic, faulty math and trying to piss on Mother Nature’s shoes. A new currency system must and will arise from the ashes of the current one that is failing. Having real wealth and real money will allow you a place at the newly cleared and cleaned monetary table.