20 April 2009
There are so many people that write to me stating that gold will not go very high, not even over the $1000 mark, because certain individuals and institutions do not want this and because it is not in their interest, they will take the gold price down.
In addition to this there is so much talk about how the gold price is manipulated. So, I thought that it is time for me to at least say something about this issue.
When I hear of this so called manipulation and how there are powerful people who will keep beating the gold price down, there are two things that stand out. One, is the fact that the focus on the manipulation issue is often about the hidden or unknown to many. Two, is how fear is very pervasive in this issue.
The manipulation in gold and silver is not so much on COMEX, and all other gold and silver markets; it is much bigger than that. Also the gold price is not being taken down; it was taken down a long time ago, when we started using fiat money. Its true value was not taken down, it is still there but we need to realise the value by using it as money.
The big manipulation story is quite simple in that gold and silver are not being used as money and has now been relegated to “just another investment” status, therefore not realising its full value to society. The key manipulators are governments and we the people who keep using the fiat money instead of real money.
The bad thing about this is the fact that actually we the people can fight this manipulation by using (as money) gold and silver and by stop using fiat, but we are helpless or paralysed through fear and lack of knowledge. The starting point would certainly be to save our wealth in gold and silver.
Fear contributes enormously to keeping this manipulation going.
The fear factor is so pervasive and is also very evident in how people view the price of gold. So many people are quick to point out how some people with a lot of power will take the price of gold down. This is what in many cases keeps them from accumulating gold and silver.
If you are one of those people, then I would like to give you some advice. Do not be a fool. Rather heed the following advice:
“The fear of man bringeth a snare” - Proverbs 29:25
“fear ye not the reproach of men, neither be ye afraid of their reviling” - Isaiah 51:7
Fear keeps you in bonds, it prevents you from enjoying the benefits that real honest money brings. Fear prevents you from exercising your God given power. The price of gold will soar past the $1000 marks and marks much higher than that. There is nothing that those so called powerful people can do other than also ride the gold bull.
Physical gold and silver is power to obtain what is considered value, whereas fiat money is a right to obtain what is considered value.
There is a big difference: Power is an ability to act or do, and a right is a claim or a title. With a right your ability to act is dependent on whether you are allowed the power to act.
The ability to obtain value for fiat money is dependent on the issuer of the fiat money. If it is electronic fiat, like money in the bank, then you can use your money provided the bank does not freeze your account. The bank therefore gives power to your right. There are many more ways in which to illustrate why fiat money is a right (a very shaky right) and not power.
The fact is that power breeds confidence, whereas a right breeds fear (fear of the one who grants the right). Dependence on rights eventually lead to a welfare state, people who look to a government to provide for everything instead of using their own ability.
The manipulation of gold and silver is not a secret, it is in the open. Everyone knows that we do not use gold and silver as money when it is by far the most superior form of money. The manipulation can be beaten, however, knowledge needs to be increased, and fear needs to be overcome.
Accumulating gold and silver is the best way to fight this manipulation, since having gold and silver is power. The gold and silver price and the value of gold and silver should eventually tell the same story. Currently the gold and silver price is undervalued compared to their value, therefore gold and silver is a must buy.
The price of fiat money is being managed and therefore affecting the paper price of gold, but even so, the paper price of gold cannot be successfully suppressed, because of the nature of fiat money. Also, no group of people have so much power to successfully suppress the paper price of gold, it is just fear that makes them seem so powerful. Fiat money will realise its full value of nothing and therefore true money will prosper.
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May God bless you.
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I also highly recommend these articles by Hubert Moolman:
Gold is money: therefore a hedge against inflation and deflation
If deflation of asset prices continues, from here gold might (a big maybe) temporarily underperform the dollar but as deflation (of asset prices) increases gold will win this battle effortlessly in the end. Why? Because gold is money and it is a capital (real) claim on assets. The dollar is “parading” as money since it is a “debt claim” on tangible assets.
Fake Money, Dead Money and Fake Leaders
The central banks and world leaders know that their system (world monetary system) cannot continue for much longer without gold giving that system credibility and confidence, as it has done for the dollar when it was created. They will therefore have to start using the gold word as a possible solution. The so called current "financial crisis" is testament to the fact that the world's current monetary system is about to end.
Why Gold Owners Are Targets of the Government
By Gary North
At some point, the number of investors who figure out that they had better buy gold is going to go from less than 1% of the public to 5%. When that happens, the supply of gold will not increase, and the price of gold will skyrocket. If as many as 10% of the investing public tries to put 10% of their assets in gold, I suspect the price of gold would go to $10,000 an ounce...
...Who is going to win the gold wars? Holders of gold. The big winners will be Indian wives whose fathers gave them a lot of gold as a dowry. The rest of us gold bugs will also do well. The general public will never catch on in time...