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In 2008, if I told you that the Fed would continue to print trillions of dollars to keep the economy afloat, save the stock market and hold down interest rates, would you have thought geez, this is a great time to buy gold and silver?  Of course you would.  Because it is a good time to buy gold and silver.  Everything is working in favor of the precious metals EXCEPT the price.

How can that be?  Well, if the markets weren’t heavily manipulated, it couldn’t be.  So draw your own conclusions.

Another unexpected event is that the US dollar recently strengthened.  Two years ago, it seemed likely that the dollar was at an all time low.  Most economists expected it to go even lower.  Actually, I still believe it will – but the financial problems with the PIIG’s and then Japan’s decision to devalue the yen send a lot of foreign investors into the dollar.  It’s not that the dollar is STRONG; the other currencies that make up the USDX are worse off, or at least that is what the “hot money” crowd thinks.

That is another reason WHY the price of gold had to be crushed – after it topped $1900.  The Fed panicked.  Gold was showing the dollar up for what it was – a basket case.

Brad Hoppmann’s thesis makes perfect sense to me (see full statement in Today’s Quotes section).  He said:

Maybe the Federal Reserve made those first trades itself. The New York Fed has its own trading desk that implements QE3 and other programs. They could just as easily trade gold or anything else.

I’m not saying this did happen — just that it is possible. At the very least, it looks like the Fed should tighten security around its announcements. Even the appearance of leaks or favoritism creates needless risks to financial markets.

Uncommon Wisdom, September 23, 2013

Peter Mickelberg said:

China understands the power of gold and they are purchasing gold to ensure they have a seat at the table when the ‘Great Reset’ occurs. The Chinese know that gold will be a part of the new virtual reserve currency and they want the Renminbi to be part of the Great Reset too.

jsmineset.com, September 23, 2013

Do not be misled by the day-to-day manipulation of gold and silver.  In every way but the price (determined by buying and selling on the futures market, not by physical demand), gold and silver are more necessary than ever.

Watch the following Kitco video – Daniela Cambone interviews Jim Rickards.  Rickards discusses gold, the dollar, the economy and the Fed.  A must-see short interview below.

Jim Rickards: Fed Knows Gold Has To Go Higher

Here are two Zero Hedge articles that are worth reading…

Guest Post: The Case For Investing In Gold

Submitted by Tyler Durden on 09/21/2013 

Submitted by Tomas Salamanca of the Ludwig von Mises Institute of Canada,

The last two years have been disappointing for gold investors and what happened this week to the yellow metal epitomized the frustrating price movement. After the Fed startled the markets by announcing that it was going to continue with its current rate of bond purchases, gold shot up from just under $1300 an ounce to $1370. But late Thursday, it started to back off somewhat from those gains before falling sharply on Friday.  It ended the week at $1325, virtually unchanged from the prior week.

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Lastly, check out this important article from ZeroHedge:

On The “Lunatics” At The Fed” Bill Fleckenstein Warns “As The Fantasy Dies, Gold Will Soar”

Submitted by Tyler Durden on 09/16/2013

“Right now, people continue to believe that the same idiots that created all of these problems, namely the central banks, are going to somehow get us out of it with the exact same policies that got us into it,” is the subtle manner in which the outspoken Bill Fleckenstein describes the ‘fantasy’ in which most Americans live during this wide-reaching interview. “We’ve had so much artificial stimulus, and we’ve misallocated so much capital;” he adds, warning that Americans “believe in the lunatics at the Fed, and the rest of the Western world is that way (as well).” His conclusion is clear, “as the fantasy dies, then they will understand the need to own gold,” and if the Fed tapers and is forced to un-Taper, “more people will see that the Fed is trapped.

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