chinmusic
7th June 2010, 06:03 PM
I know there are many here that believe there is a conspiracy against gold and that the markets are rigged by TPTB. I read this message on another forum today. It is clear, concise and it rung true to me.
The world's currencies, for one reason or another, need to depreciate. Whether it is to pay off debts, or maintain exports, no one is willing to be the strongest currency. Therefore, it becomes more and more difficult to appreciate against others when they are doing the same against you. Something needs to be used for depreciating against.
There is only one monetary equivalent that every currency can depreciate against, and that's gold.
Yet, as these events unfold, behind the scenes, the Central Banks primarily of the East, are increasing their gold reserves. They need to do this for the upcoming re-balancing of the world economy.
Central Banks want to depreciate against gold, but at a speed of their choosing. Other Central Banks want gold to remain "cheap" so they can maintain their purchasing programs.
When Central Banks the world over have one thing in agreement - rising gold, but not too fast - they will do what it takes to work together towards that goal.
I think it would be irresponsible of the world's central bankers to allow gold to freely trade. It would be too disruptive. Gold is like a helium balloon that wants to take off. The Central Bankers, with their "shareholders" in cooperation, are merely weighing down that helium balloon from escaping their goals. They want the ballon to rise, but not so fast that they loose control of it.
Just a thought.
The world's currencies, for one reason or another, need to depreciate. Whether it is to pay off debts, or maintain exports, no one is willing to be the strongest currency. Therefore, it becomes more and more difficult to appreciate against others when they are doing the same against you. Something needs to be used for depreciating against.
There is only one monetary equivalent that every currency can depreciate against, and that's gold.
Yet, as these events unfold, behind the scenes, the Central Banks primarily of the East, are increasing their gold reserves. They need to do this for the upcoming re-balancing of the world economy.
Central Banks want to depreciate against gold, but at a speed of their choosing. Other Central Banks want gold to remain "cheap" so they can maintain their purchasing programs.
When Central Banks the world over have one thing in agreement - rising gold, but not too fast - they will do what it takes to work together towards that goal.
I think it would be irresponsible of the world's central bankers to allow gold to freely trade. It would be too disruptive. Gold is like a helium balloon that wants to take off. The Central Bankers, with their "shareholders" in cooperation, are merely weighing down that helium balloon from escaping their goals. They want the ballon to rise, but not so fast that they loose control of it.
Just a thought.