TSX:LSG.DB - Post by User
Post by
Rescue9on Oct 05, 2015 10:22pm
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Post# 24165890
Paper gold
Paper goldIf you've been watching the day to day spot price for gold you will have noticed that each week you'll see a $25-$35 difference in the spot price highs and lows.Now that doesn't seem like a large percentage change and it isn't but when they trade 70-90 million ounces of paper in a week,someone is making a sh$tload of money by manipulating the POG.Here's how I think it works.We all suspect that the paper gold is not backed 100% by actual bullion so they flog the cheap paper to bring the price down and then they buy the physical gold thus driving the price back up.Rinse and repeat and repeat again and again,80 million ounces times $30 per ounce?Over time they will get back all of the bullion that was leased,sold or otherwise spirited away and replaced by paper.Nice work if you can get it.Problem is that the paper will still be circulating thus causing more grief for those of us that believe that actual gold is King.I'm happy that LSG is in the mining business,not pulp and paper.
R9.