Effect of Manipulation in the Precious Metals Market

Manipulation in the precious metal market will continue to exist as long as investors will trade in metal paper instead of buying real metals. The tactic behind manipulating prices of gold and silver is to inflate the stock market to achieve certain goals. Firstly, it restores the public faith by artificially inflating stock prices while the statistics of economic activity continue to deteriorate and secondly, it lifts up the dollar while destroying the trader’s sentiments in a precious metal market.

This image of manipulation in the precious metal market has been floating for many years but was always suppressed by higher powers because the last thing they want to see is the gold price escalating. This will create panic among people in the global market and they would want to get out of the dollar. Therefore, you should always consult Your Personal Financial Mentor before investing in the market because he can analyse the market trends effectively and will always give you an expert advice.

Corruption is very common in the western financial market and there was always a doubt of manipulating the precious metal prices by the bullion banks. But no one can say it for sure because the gold market has never been transparent. However, if these banks lower the gold and silver prices, demand for a physical metal will increase. Hence, one can clearly see that the motive of manipulating prices has been to create a psychology to stay away from gold just to be on a safe side.

However, this strategy has worked so far. And maybe the market players are feeling comfortable to win this round in the metal paper market. But the game of ownership of physical metal is not over and it seems that the demand for physical metal will only increase in the future if its prices continue to fall.  Therefore, one can say that these market extremes will not last forever and after some time, they will reverse. Now the question arises; when will it end? There is no given date to answer this but one can safely say that it is just a matter of time when the lower metal prices will eventually leave the worst behind.

More and more people are buying physical metal than ever before and market premiums are continually rising. There is a chance that physical metal prices will demand heavy premiums in the future as compared to prices of metal paper.  Once the paper is out of the market, then an investor will be able to see the metal prices based on supply and demand of the physical metal.

Categories: Precious Metals Market

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July 12, 2013 Effect of Manipulation in the Precious Metals Market