Friday, February 4, 2011
Tuesday, January 4, 2011
How have they done to lower the price of gold ?
How have they done to lower the price of gold?
This is a rather complex but can be simply explained. Central banks, initially, did not put their own gold for sale. They found a third, him, had gold. This "third" sold his gold to a broker who then sold it to a mining company, a speculator or a government. This third party then got the support of the broker itself with the promise of the central bank to supply physical gold if needed. The central bank was getting, as collateral, a private note to the broker who received a commission. This method allowed to mobilize gold reserves outside the government. The gold price in world currency was maintained to the extent that significant quantities of gold bullion certificates were replaced by commercial banks (as well as anyone wishing to join the game).
This game was not lost for a few large buyers looking to buy GOLD BUT NOBODY DOES noticed. Why not play the game by offering cash to the broker or bank in exchange for a certificate for gold indirectly supported by the central bank? This certificate, or "paper gold" was exactly like gold to the bank. Central banks have accepted this system as it has prevented any movement of gold and appropriate to exit the market purchasing power is very important that might have been able to climb sharply if the price gold purchases had been made on the market ..
These certificates have also worked well as a vehicle for providing the gold paper into the oil business.
But a new situation has emerged just at the end of the first Gulf War. Which previously appeared as large sums suddenly took another dimension when big players in Hong Kong began to buy on the market while physical gold and all the tickets pledged on gold. With particularity, however: they bought at lower prices to lower and lower gradually as the price of gold fell. But, and this is the most important, they never attempted to raise prices, and seemed to have unlimited means. In any event, they were still buyers.
Seeing this, some people (Middle East), began to exchange their gold certificates against gold bullion.
Since then, that is to say since the beginning of 1997, the LBMA (the gold market of London, ndt) has seen its volume rise very significantly, and a battle began to keep the price gold does not rise. In other words, the volume of paper has negotiated the fly and adjust the volume of physical gold that changed hands, and it was quite a leap upward.
More importantly, it was no longer possible to hide what was happening.
This is a rather complex but can be simply explained. Central banks, initially, did not put their own gold for sale. They found a third, him, had gold. This "third" sold his gold to a broker who then sold it to a mining company, a speculator or a government. This third party then got the support of the broker itself with the promise of the central bank to supply physical gold if needed. The central bank was getting, as collateral, a private note to the broker who received a commission. This method allowed to mobilize gold reserves outside the government. The gold price in world currency was maintained to the extent that significant quantities of gold bullion certificates were replaced by commercial banks (as well as anyone wishing to join the game).
This game was not lost for a few large buyers looking to buy GOLD BUT NOBODY DOES noticed. Why not play the game by offering cash to the broker or bank in exchange for a certificate for gold indirectly supported by the central bank? This certificate, or "paper gold" was exactly like gold to the bank. Central banks have accepted this system as it has prevented any movement of gold and appropriate to exit the market purchasing power is very important that might have been able to climb sharply if the price gold purchases had been made on the market ..
These certificates have also worked well as a vehicle for providing the gold paper into the oil business.
But a new situation has emerged just at the end of the first Gulf War. Which previously appeared as large sums suddenly took another dimension when big players in Hong Kong began to buy on the market while physical gold and all the tickets pledged on gold. With particularity, however: they bought at lower prices to lower and lower gradually as the price of gold fell. But, and this is the most important, they never attempted to raise prices, and seemed to have unlimited means. In any event, they were still buyers.
Seeing this, some people (Middle East), began to exchange their gold certificates against gold bullion.
Since then, that is to say since the beginning of 1997, the LBMA (the gold market of London, ndt) has seen its volume rise very significantly, and a battle began to keep the price gold does not rise. In other words, the volume of paper has negotiated the fly and adjust the volume of physical gold that changed hands, and it was quite a leap upward.
More importantly, it was no longer possible to hide what was happening.
2011, the year of POL (Free Gold Price)
This is a representation of a rocket propelled gold which, as suggested by Robert Zoellick, the president of the World Bank, the golden point of reference.
The consequences are the same.
Best wishes for a happy new year to all, 2011 is the year the price of gold will regain its freedom.
The consequences are the same.
Best wishes for a happy new year to all, 2011 is the year the price of gold will regain its freedom.
Like the good old days
We are now on the threshold of one of the most important financial changes that history has encountered, and not without historical parallel. Indeed we are witnessing a return to trend. The aim of this paper is to present the incredible power of such training, both simple but also full of potential.
To better understand this return to the support, it is necessary to make a comeback in the past and see if this has happened before. We see that the point of buying the highest that gold has been occurred in the 1970s, leading him as a return to the carrier, as you can see from the chart above. The gold price was fixed by the Government of the United States at $ 35 per ounce in 1935 and remained the same for a period of 32 years before fleeing to increase in 1968.
Despite its calm, the price of gold was beset by powerful forces. When in 1935, Franklin Delano Roosevelt fixed the price of gold to 35 dollars per ounce, the latter found himself overvalued. Indeed, the price of gold was of 20.67 dollars per ounce until 1932, a general price increase of 70% was needed to justify such a reassessment. Thus, the late 1930s proved to be very profitable for mining companies.
The situation is reversed when, during the Second World War, the government ordered the closure of all mines for the duration of the conflict. The fact that the American gold standard is the cause of the birth of the most powerful economy the world had not crossed the minds of great thinkers of the time. America is seen firing a distinct advantage because it was the only country in favor of gold, making its economy more powerful than other countries. This allowed him to have better equipment and a more sophisticated technology that, in the hands of General Patton, overthrew the trend.
However, during the Second World War, the U.S. saw their consumer prices double. The price of gold fixed at $ 35, previously overvalued, also became obsolete. Thus, despite the reopening of the gold mines after the war, the undervaluation of gold does not allow them to pay their employees competitive salaries during the years 1940-1950. In 1956 a general strike broke out in the mines of California, who, being unable to meet the demands of their employees were forced to close their doors. Many of these mines are still closed to this day.
While the fixed price of gold became increasingly free of reality, the law of supply and demand came in. With a very low price of $ 35 per ounce, gold mining does had no choice but to decline the offer while at the same time, the jewelry industry saw its demand increase. The United States can not alone bear the burden of removing the gold price, they recruited nine other nations formed in 1962, the London Gold Pool, which took over this operation.
Following a tremendous demand for gold has been raging in 1968, the London Gold Pool was broken. The price of gold was then launched into what became the greatest buying opportunity in history.
It was also easy to see that, firstly, having been stable for a period of 30 years, gold has exploded upwards, not downwards. The application was therefore greater than supply, although this offer was the highest in history. Ten nations worked to keep a low gold price, but supply still found himself overwhelmed. Finally, a small mathematical genius threw some light on this whole situation: the price of gold was approximately 20.67 dollars for 145 years. However, since 1933 the United States, average prices had tripled (causing gold prices to 62 dollars per ounce). The political situation also suggested that the paper money was on the verge of a major crisis. When Richard Nixon announced "I am a Keynesian," the Republicans, just like the Democrats, opposed to gold, leaving open the path towards crisis and rising prices. This has actually occurred, and it was then not so difficult to realize.
To better understand this return to the support, it is necessary to make a comeback in the past and see if this has happened before. We see that the point of buying the highest that gold has been occurred in the 1970s, leading him as a return to the carrier, as you can see from the chart above. The gold price was fixed by the Government of the United States at $ 35 per ounce in 1935 and remained the same for a period of 32 years before fleeing to increase in 1968.
Despite its calm, the price of gold was beset by powerful forces. When in 1935, Franklin Delano Roosevelt fixed the price of gold to 35 dollars per ounce, the latter found himself overvalued. Indeed, the price of gold was of 20.67 dollars per ounce until 1932, a general price increase of 70% was needed to justify such a reassessment. Thus, the late 1930s proved to be very profitable for mining companies.
The situation is reversed when, during the Second World War, the government ordered the closure of all mines for the duration of the conflict. The fact that the American gold standard is the cause of the birth of the most powerful economy the world had not crossed the minds of great thinkers of the time. America is seen firing a distinct advantage because it was the only country in favor of gold, making its economy more powerful than other countries. This allowed him to have better equipment and a more sophisticated technology that, in the hands of General Patton, overthrew the trend.
However, during the Second World War, the U.S. saw their consumer prices double. The price of gold fixed at $ 35, previously overvalued, also became obsolete. Thus, despite the reopening of the gold mines after the war, the undervaluation of gold does not allow them to pay their employees competitive salaries during the years 1940-1950. In 1956 a general strike broke out in the mines of California, who, being unable to meet the demands of their employees were forced to close their doors. Many of these mines are still closed to this day.
While the fixed price of gold became increasingly free of reality, the law of supply and demand came in. With a very low price of $ 35 per ounce, gold mining does had no choice but to decline the offer while at the same time, the jewelry industry saw its demand increase. The United States can not alone bear the burden of removing the gold price, they recruited nine other nations formed in 1962, the London Gold Pool, which took over this operation.
Following a tremendous demand for gold has been raging in 1968, the London Gold Pool was broken. The price of gold was then launched into what became the greatest buying opportunity in history.
It was also easy to see that, firstly, having been stable for a period of 30 years, gold has exploded upwards, not downwards. The application was therefore greater than supply, although this offer was the highest in history. Ten nations worked to keep a low gold price, but supply still found himself overwhelmed. Finally, a small mathematical genius threw some light on this whole situation: the price of gold was approximately 20.67 dollars for 145 years. However, since 1933 the United States, average prices had tripled (causing gold prices to 62 dollars per ounce). The political situation also suggested that the paper money was on the verge of a major crisis. When Richard Nixon announced "I am a Keynesian," the Republicans, just like the Democrats, opposed to gold, leaving open the path towards crisis and rising prices. This has actually occurred, and it was then not so difficult to realize.
The light at the end of the tunnel Bretton Woods
Here is what comes down the monetary power born of the second Treaty of Bretton Woods institutions and the banking cartel of the dollar:
"Taking the example of the striking metaphor of the cave Plato compares men to prisoners gagged can not look in a single direction. A fire burns behind them, throwing them on the wall facing their own shadows, as well as those of objects around them. They perceive nothing, though they are their shadows seemed more real than the objects which they originated.
One of the prisoners eventually escape, fleeing to sunlight. For the first time he will be conscious of the real things and realize it has always hitherto been deceived by the shadows. For the first time he will realize the truth and not looked back with great sorrow his life in darkness. "
Werner Heisenberg, Physics and Philosophy
"Taking the example of the striking metaphor of the cave Plato compares men to prisoners gagged can not look in a single direction. A fire burns behind them, throwing them on the wall facing their own shadows, as well as those of objects around them. They perceive nothing, though they are their shadows seemed more real than the objects which they originated.
One of the prisoners eventually escape, fleeing to sunlight. For the first time he will be conscious of the real things and realize it has always hitherto been deceived by the shadows. For the first time he will realize the truth and not looked back with great sorrow his life in darkness. "
Werner Heisenberg, Physics and Philosophy
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