A tale of two gold markets

James Rickards/Daily Reckoning/7-7-2017

“Finally, investors can take comfort from the fact that all manipulations fail in the long run. Whether it’s the “gold corner” of 1869, the “gold pool” of 1968, Kissinger’s secret “gold dump” of the late 1970s, or “Brown’s bottom” (when the U.K. sold most of its gold at 30-year low prices) of 1999, or the more recent gold games on the Comex, all manipulations fail. Gold prices always find their way higher, because paper currencies always lose value over time.

The key response functions to manipulation are patience, confidence in the long-run path of gold and nimbleness in stepping up to buy gold at interim lows when manipulation gets out of hand, as it just did.

The gold rally that began on Dec. 15, 2016, is poised to continue despite the trauma of the flash crash. The crash represents a gift to investors. We now have a better entry point for what will still be much higher gold prices later this year.”

MK note:  I might add that the turnarounds from medium to longer term manipulations can be in the form of a price eruption that usually surprises the critics, and gold owners as well.  The best way to weather these paper-imposed downtrends is to buy the physical metal itself when it looks cheap and bide your time, a strategy we have employed successfully at USAGOLD for decades.  Now is one of those times.  As Rickards points out, the downsides represent “a gift to investors.”  Just ask those who bought in the early 2000s. . . . . . .a time very comparable to what we are experiencing now.

Most of  newly-refined physical gold in bullion form, particularly 32.15 troy ounce kilo bars, is earmarked for delivery to waiting physical clientele – particularly at current prices. Here’s another quote from that article worth filing for future reference:

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