Gold price crushed to deter support for Swiss initiative: report
British fund manager Ben Davies says that gold prices’ most recent collapse is part of central bank efforts to discourage Swiss voters from supporting the gold initiative to be decided at referendum on November 30.
Speaking to King World News, Davies adds that the risk and reward factors are now more favourable for gold than for any other investment:
“[Gold] is the only asset class in the world where the risk of a 10 percent loss is probably all you can see, and at the same time the upside is staggering.
“Should a ‘No’ vote result, it’s quite possible that we will get another chance to buy this market at lower prices.”
Prices recovered Thursday in European trade after a Swiss poll showed weaker support for the “Save Our Gold” initiative, which would force the Swiss National Bank to hold a fifth of its assets in the form of gold reserves and agree never to sell them in future.
Spot gold was trading at $1,189.10 an ounce, up 0.6% mid-morning Europe.
Source: Kitco’s live charts.
Gold futures for December delivery declined less than 0.1 percent to $1,193.50 an ounce in New York just before 10:00 am. Earlier, the price dropped as much as 1.5% and continues to behave erratically.
{{ commodity.name }}
{{ post.title }}
{{ post.date }}
7 Comments
Boxcar Willy
GATA has argued for years that the price of gold is manipulated by the central banks. Higher gold prices devalue the paper currency. Remember as Voltaire said paper currencies will trade at their intrinsic value. ZERO
Patrick
Wars everywhere and gold on its way down hmmmm
tunnelportterror .
“crushed” ?? gold went from 1125 to 1194 USD/oz in the past week
http://goldprice.org/NewCharts/gold/images/gold_1d_o_USD.png
I wish these bankers would just stop this baloney already, no one believes it
buy gold now !
https://www.youtube.com/watch?v=NzLIz27GqWs
Rick S
If central banks collude to keep the price artificially low then why did Gordon Brown SELL half the UK gold reserves 1999-2002 when the gold price was at its LOWEST in 20 years? If there was active collusion between the central banks then surely he would have used that influence to push the price higher to get a better deal? There was no evidence of deliberate price manipulation between the central banks then or now.
aiscit
RIck, who do you think purchased the gold at that level? If not the ones who use and employ politicians as perfect silly puppets? Central Banks have been privatized along with their gold (which probably is not there anymore), only debts are public.
M Palota
What a load of crap. Gold is going lower because the carry trade on the US Dollar has gone negative. You’re hearing a great sucking sound as funds are leaving the gold market (And, fyi, why should I buy gold itself when I can purchase a gold denominatd ETF?) and emerging markets to go to the US.
Bulldog007
I have no doubt that these nefarious bankers are doing everything in their power to suppress the price of gold. They are simply trying to stop people from losing faith in paper currencies. Alan Greenspan did this after the October 1987 crash. I think that the master has changed his views now