Why Are Gold Prices Falling?

All one needs to do to understand the gold market is to simply observe the price chart and the actions shown in that chart. Time after time, the yellow metal known as gold has roared through the $925 level as panicked investors across the world pour into the metal in a desperate attempt to find something that could preserve their wealth. Recently in Asia, gold soared to nearly $940 an ounce as Asian stock markets collapsed. As has traditionally happened, precisely day after day, gold is knocked off its highs as trading in Europe commences. And as soon as trading opens in New York, it was another further attack, erasing all of its gains in the matter of a couple of hours time. Once again, the US monetary authorities and their fellow cronies at the bullion banks assaulted the yellow metal in what has to rank among the most counterproductive price action that has ever been observed throughout the entirety of monetary history.

Desperate investors running into the time-honored safety of gold are being systematically disappointed by what has been so often touted as safety for their money. People ask time and time again why the US authorities would do such a thing, robbing their own people who are usually not wealthy investors but rather average people. The answer can be attained by merely listening to the comments of the pundits being interviewed on the financial media channels. Recently, Fox business news network was interviewing a pundit remarking about the price action of the various markets on it to the gold price and said that gold should be trading at $1200 or higher given the severity of this crisis and yet it is not. She claimed that this was telling us that perhaps the crisis is nearing an end.

Remember that it is all about the perceptions in this markets and precious metals are certainly no different, even more closely correlated. The idea is to keep the public from panicking in order to prevent a complete meltdown of the entire monetary system. If you can shoot the messenger who warns of danger, silence his voice of shouting any warning, how can people be alert to the danger that is heading right toward them? The watchmen is trying to sound the alarm that the feds are sabotaging it and they are doing this knowing very well that they are causing. They are robbing those who flee for safety into the only instrument that can protect all the money they have worked their lives for, the effects of their toiling in their sweat and tears, is beyond reprehensible -- it is criminal. That's the worst news of it, but the good news is that the price suppression in gold can only be temporary.