Central Bank Gold-Grab Intensifies, Part I
posted on
Jul 25, 2012 07:41AM
Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE
This is a 3 page article on gold and part 1 of a few to come. I found his numbers for the leveraged the highest I have seen yet, 100 paper to 1 of the real gold, wow. If this is the case, I can see why it is sometimes called the biggest naked short in the markets. Again I have to say how unfair this practice of leverage is when taken to these extremes on us little guys. By naked shorting the gold and keeping the POG suppressed to half of what some good industry analysts think/know it should be, it has also killed many gold companies sp,s and it certainly hasn,t helped ours. So, it looks like , as more physical gold is harboured by the worlds central banks, the more paper gold that is printed to suppress the price and for the naked shorters of gold to make quick bucks on the dips that are caused in the POG. Its a very profitable game for these naked shorters if they never get called on introducing all this unbacked paper gold in the markets, the same as naked shorters profit handsomely on stocks. I wish I had the opportunity to fabricate shares of companies or gold out of thin air, not costing me a cent, sell the phantom paper to start an sp or gold to start to fall and collect on my borrowed short devices. There is little risk in this game, whereas a little bit of buying can be easily thwarted by just producing more phantom paper, and regaining control of the price of the target. They put more paper on the market and walk away with full pockets once the manipulation is done, leaving the longs to sit and look and endure the destruction that took place, helpless.
This type of strategy could go on infinitly with always the same result, the naked shorters profitting at the expence of the longs and longs never seeing any appreciation in their holdings. How is this fair, how is this civil? A person would be a fool to invest in the markets with a disadvantage as such, the odds are stacked very highly against him/her of ever succeeding with only one tool to play with, go long or try to trade against an unlimited supply of stock/paper. Your only chance of really winning in this market, is to be lucky enough to invest in a company that gets bought out at many multiples from the price you bought in at, then you have a very slight chance. And then when greed enters the picture in those type of scenarios, you are restricted to what you will receive and many times don,t see a fair price.
What a cut throat world, to see a handful of rich living among a world full of poor.
http://www.thestreet.com/story/11636981/1/central-bank-gold-grab-intensifies-part-i.html?cm_ven=RSSFeed
IMO