Gold started to rise in mid January and gold bulls, myself included, felt that the tide had turned at long last.
By February 12th it had reached $1237.00 an oz. and all looked well for the long overdue assault on $1400.00 an oz. and upwards. Some dared to think that $2000.00 an oz would be in its sights within another twelve months.
Certainly the faltering economies of the world powers strongly suggested a strong bull performance from the yellow metal.
At the same time mints were running out of metal attempting to meet escalating demand, China and Russia were heavy purchasers of bullion, and buyers of every hue were hoarding the physical metal in depositories or investing in coins.
All of which should be putting gold into orbit, it certainly would have done before the corruption of government and bankers took over from time proven sound investment principles. Market rigging in all but name has resulted not only the distortion apparent in the gold market but also across most sectors of the stock, bond and commodity markets.
The Malign Influence of the Gold Futures Market
To add insult to the injury inflicted on the average investing public who have no access to the insider profiteering of Wall Street, Banks, politicians and top government officials and with the Fed in the forefront, we also have the negative interest rate situation.
Meaning that interest rates are lower than the real cost of living rates, not the massaged figures that government dreams up. This alone should drive gold, but so far with no effect.
Nor should we forget the malign influence of the gold futures market, where more often than not, the highly leveraged open interest is way above the annual mining output, which, by definition means that there is simply not nearly enough available metal to meet the demand should the contracts ever be called upon to deliver instead of being traded as a speculation for paper returns only.
No Currency Has Survived Without Gold Backing
So what does the future hold?
Who can tell just how long the malicious influence, or should we be kind and call it the mistakes, imposed upon us will last. It is hard to contemplate that there will be no end to the distortions but history tells us that no currency, not backed by gold and silver, has survived.
It is hard to conceive that the present situation can continue ad infinitum. There will be a trigger that will kick start the return to value currency, holders of gold and silver will benefit while the average Joe will suffer horribly as the dollar in his pocket rapidly becomes worthless. Sooner or later gold will deliver on its promise !