RE: Correction This comes from a poster, James Truman, responding to an headline article on Marketwatch today:
"... your employers over at the banking cartel are good at what they do. But gold is not a paper abstraction like Facebook. Just because GS is filled with experts at market manipulation does not mean they can succeed in what they've now set out to do, because it is an impossible task.
"When they sell this much paper, lowering the gold price artificially, it has consequences. They and/or their fellow primary dealers will need to deliver physical gold at these prices or the fake so-called "spot" price that they've created will be entirely discredited. The lower they punch the price, the more gold physical buyers will be able to buy with the same amount of money.
"No doubt, they've made some arrangements with the Fed for the export of even more of the foreign gold stored underneat 33 Liberty Street in Manhattan. But, they started out with only 6700 tons in that vault, and they've already sold off 4500 tons since 1991. That means only 2200 tons are left (yes, I've gotten more accurate numbers since last I spoke about this) without physically opening up the sealed repositories at Fort Knox, West Point, and the Denver Mint.
"Since March 1st, China ALONE has imported about 400 tons of physical gold, and about 800 in the 3.5 month period since January 1st. They are going to import even more gold, now that the price is lower. Russia, the Middle East and India will do the same. The 2200 tons still in the Fed basement won't go very far at this rate of expenditure.
"That will also have consequences. Remember, the world dominance of the USA is only in small part based upon military superiority. Most of our power comes from economic supremacy. If the Chinese are able to issue a nominally gold backed currency, even if the gold-backed yuan is not redeemable in gold, it will have the credibility it needs to displace the US dollar. That will leave the USA impotent. Our biggest weapon is economic, and we will no longer be able to finance troops overseas, for example.
"Accordingly, this is a very temporary manipulation, and waiting to buy is not the wisest thing to do, as it could reverse at any moment"
https://on.mktw.net/111Xh85