Is The Gold Market Manipulated?

What difference does it make whether gold or silver are manipulated? Price of anything going up or down is due to the effects of supply and demand. Whether it's governments that are selling, or large organizations, or perhaps powerful individuals is of no consequence. The fact that price is going down is reason enough to be cautious of the long side and aware of the short.

From what I recall, it was the speculators that pushed the price up through the years. They were to be blamed for the high cost of these metals. Now that the price is going down it's the governments or some other entity doing the dirty work. All this talk isn't going to do anyone much good. What's practical is to take advantage of this situation and if not profit, at least minimize the losses. With sufficient practice and focus this is an achievable goal. Direct focus on things that lead to tangible results, as opposed to conspiracy theories. Not that the conspiracy theories are all wrong. It's just that they keep one mired in these theories, instead of letting one focus on developing the skills to get better at trading, investing, or speculating.

Gringo
 
should gold be worth more with all the printing of money? yes. should the stock market be so high with no economic improvement or sales revenue growth? no. is it all manipulated by governments? if yes maybe you have trading around the current policies more than pure manipulation.

Quote from OddTrader:

Is The Gold Market Manipulated?

http://seekingalpha.com/article/185...-part-1-introduction-and-the-london-gold-pool

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Both gold and silver often trade together, and they are both monetary metals. The proponents of the silver manipulation theory also support the gold manipulation theory.

However in many ways the gold manipulation story is very different than that of silver manipulation.

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i have looked at gold but don't know much about it. i don't see any investment i can make 3.5% for 2 years with no real risk of losing principle do you?
 
Gringo said:
What difference does it make whether gold or silver are manipulated? Price of anything going up or down is due to the effects of supply and demand.
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Yes and no. It makes a difference if the supply is artificially high or artificially low. It also makes a difference if the demand it artificially high or artificially low. A stack of the shining stuff deliberately held back in bonded just to create supply side pressure is artificial. That's qualitatively different to a genuine lack of supply of physical.
 
Sounds like the claim of one of those Austrian gold bugs that are trying to explain their losses from their gold investment over the last year.
 
PieterSteidelmayer said:
Yes and no. It makes a difference if the supply is artificially high or artificially low. It also makes a difference if the demand it artificially high or artificially low. A stack of the shining stuff deliberately held back in bonded just to create supply side pressure is artificial. That's qualitatively different to a genuine lack of supply of physical.
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Price action traders focus on the imbalance of supply and demand, as made evident by the behavior of price itself, and don't care much about the reasons behind these moves. Whether the demand was curtailed because of some deep analysis by individuals, or whether the governments or banks conspired to manipulate the price, has no bearing on the outcome. The price ends up dropping in either case. A trader who recognizes this imbalance and acts, profits; one who doesn't recognize this, does not. Why does one put money on the line in the first place? To be right, or to make money? When one stops blaming the external, the answers become clear within.

Gringo
 
Gringo said:
Price action traders focus on the imbalance of supply and demand, as made evident by the behavior of price itself, and don't care much about the reasons behind these moves. Whether the demand was curtailed because of some deep analysis by individuals, or whether the governments or banks conspired to manipulate the price, has no bearing on the outcome. The price ends up dropping in either case. A trader who recognizes this imbalance and acts, profits; one who doesn't recognize this, does not. Why does one put money on the line in the first place? To be right, or to make money? When one stops blaming the external, the answers become clear within.
Gringo
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The price action we trade is a direct result of fundamental forces acting on the underlying or on a synthetic amalgam of asset classes which can be represented by a specific underlying asset as proxy. The basis for those forces be they natural, supply demand, or artificial, has a VERY direct bearing on how that price action is LIKELY to develop in time.

Many non-professional traders, such as you it would appear, wait for that development to occur before taking action. There’s not too much wrong with that as your entry is largely risk-free, or should be, but you expose yourself to risk on exit from getting into the move too late and giving back by sitting too long on a dying move. You are reactive traders, reacting to what occurs in real time. Many such as myself are positioned ahead of the move to take advantage of the initial impulse as evidenced in cases where price is artificially manipulated. Pre-emptive traders. Our risk is on entry and the potential for non-development of price action where we rarely risk more than the spread plus costs, but this is more than compensated for by the higher than standard rewards when the impulse does develop. The latter style of trading requires insight, market knowledge, experience and a degree of intelligence uncommon in the average man, let alone the average trader, which is why is it unattractive to the majority who trade on an amateur basis.

A case in point is my current position on Copper. Many reactive traders will wait for it to head south below the 3.00 mark to go in; I am already positioned short knowing what I know, and what I have explained in that thread. There are no Dark Arts involved; just insight, market knowledge, experience and intelligence.
 
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