I don't want to appear like I will believe any random conspiracy theory rattling around the Internet. However, one that I think does have some substance is the lack of physical gold in vaults in the US. This year Germany agreed to stop repatriation of their reserves from the US. This is gold which has only existed in audits, earned from trade surpluses between the US and Germany from previous decades. The US was very keen to stop the repatriation and has given Germany significant incentives to 'leave' it where it is. Other countries haven't been so amenable as Germany. So if the vaults are as bare as the unsubstantiated rumours suggest it is in the interests of the US to keep downward pressure on the POG. Of course, different holders leverage holdings against debts, offset by holding elsewhere which counter leverage against debts held back and across other debts which are offset against reserves held on paper against blah de blah. I tend to think the real conspiracy is one of obscuring who holds what and where and why. It is a mess. Meanwhile, in addition to keeping the price down while buying in gold to give to the tin pots demanding their gold back, the US will also want the price of gold verses the price of oil to stay as close as possible to stable while OPEC keeps oil down to maintain that monopoly to keep the petro up, as this is what keeps the US economy strong. Makes my head spin. So until oil goes up, gold probably will not, and OPEC is not likely to influence oil prices until March 2016 at the earliest, if the conspiracies of their rubbing of the Russian market is true, and they are waiting on the 2017 contracts. It is interesting to note that while all of this is happening, Russia is in fact the biggest hoarder of gold at the moment, which does add weight to this theory, as their pressure of POG puts a lot of pressure on the US economy while they put pressure on OPEC to put pressure on Russia. Why can't we all just get on?
I don't own a foil hat, have an apocalypse ready plan or read Murdoch newspapers. However, I do think we should all view these markets with healthy scepticism to avoid being roadkill. If you don't at least consider the possibility of such games going on behind the scenes you are perhaps a little naive.
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