Welcome to illuminati silver, we tell you
the truth about silver. Today is Wednesday 6th January 2016 and we
are addressing the issue of Gold and Silver price manipulation. This subject is so large
we are therefore going to produce a series of 11 videos covering all aspects of this
very interesting and yet complicated topic. It is a well-known fact that since their highs
of 2011 in US dollar terms gold has fallen some 44% to its current price of $1085 and
silver has fallen some 72% with it currently standing at $14 an oz.
Many reasons have been given for such decreases in price, many of which have ranged from falling
demand, lack of investor interest right through to deliberate price manipulation.
Today we are going to give Jim Rickards View which is, that prices are manipulated and
the reasons for that manipulation. For those who do not know who Jim Rickards
is, his Wikipedia entry states: “James G. Rickards is an American lawyer.
He is a regular commentator on finance, and is the author of The New York Times bestseller
Currency Wars: The Making of the Next Global Crisis, published in 2011, and The Death of
Money: The Coming Collapse of the International Monetary System, published in 2014.” He
has also been involved in investment and held prominent positions within the economic field
over the past 35 years. Earlier this year Jim Rickards produced an
article in the Daily Reckoning publication laying out his view as to why China has been
allowed to accumulate Gold at relatively low prices. If he is accurate then his findings
will prove quite surprising to those who believe that Western gold Stocks have been depleted.
This in essence is what he claims: • The United States has 70% of its reserves
in Gold, while China only has 1% of its reserves in gold.
• THE US gold reserves at current market prices are about 2.7% of GDP. Russia is similar
and Europe stands at 4%, while China’s official reserves stand at a paltry 0.7%
• Even allowing for China holding say 4000 tons of gold, this will still only bring its
reserves as a percentage of GDP in line with the US and Russia, when it needs to be higher
as its economy is still continuing to grow at a relatively high level.
• If gold was allowed to rise in price, then there would be no possibility for China
to be able to afford to purchase the gold it needs to in order to reach those levels
of reserves required. • With China being the World’s second
largest economy, and much of the world’s trade is dependent on that economy, it has
to accommodate China to amass that appropriate level of gold before the price cap can be
allowed to be released. • With the US requiring to maintain the
dollar as a World currency, at least for the time being, and with Chinese reserves being
vulnerable to the dollar (i.e. if the dollar value falls then the price of Chinese assets
also falls which will result in potentially catastrophic losses), it is in the World’s
interests to maintain a relatively high dollar value and enable China to acquire its gold
at current low prices. Thereby hedging their asset position.
So Rickards puts forward the argument that prices are deliberately held down in order
to help China out. He also adds a fear that there is a possibility that there may not
be sufficient time available for China to acquire all of the gold it needs. Perhaps a cynic might say, well if he is right,
then the answer is simple, push the price of gold down even further. Part 2 will reveal another case in favour
of manipulation and the reasons why it is being carried out.
We hope you have found this video interesting and informative and if so, please give it
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of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of