For years, it’s been widely acknowledged in financial circles that the price of gold has been artificially suppressed by major bullion and central banks around the world, including the Bank of International Settlements, often referred to as the “central bank of central banks.” Despite overwhelming natural demand for gold, particularly evident in markets like COMEX where the majority of trades are “buys,” the price of gold remains lower than what basic supply and demand principles would suggest.
How Gold-Fixing Works
Gold-fixing is essentially the process where a small group of powerful bullion banks can exert a significant influence over the price of gold. By running large short contracts in the derivatives market, these banks can create downward pressure on gold prices that outweighs the natural buying demand. This manipulation keeps gold prices artificially low, preventing them from reflecting their true market value.
Gold-fixing is essentially the process where a small group of powerful bullion banks can exert a significant influence over the price of gold. By running large short contracts in the derivatives market, these banks can create downward pressure on gold prices that outweighs the natural buying demand. This manipulation keeps gold prices artificially low, preventing them from reflecting their true market value.
The Impact of Gold-Fixing on Markets
The consequences of this systematic price fixing are profound. It masks the real value of gold, distorts market realities, and delays the inevitable reckoning that comes with the ongoing devaluation of fiat currencies. However, this artificially controlled system is unsustainable and is likely to collapse under its own weight as more people and nations begin to lose faith in traditional currencies.
For further insights into the manipulation of gold prices and the dynamics of gold-fixing, you can explore our in-depth resources or watch our latest video discussion.
The Disparity Between Paper Gold and Physical Gold
One of the most concerning aspects of the current gold market is the vast difference between paper gold and physical gold. For every ounce of physical gold, there are approximately 109 ounces of paper gold contracts traded. This imbalance highlights the fragility of global gold exchanges and underscores the importance of owning physical gold rather than relying on paper contracts.
Conclusion
Understanding the dynamics of gold-fixing is crucial for anyone serious about investing in gold. By being aware of the artificial pressures on gold prices, investors can make more informed decisions and better protect their wealth. At Gold Bullion Partners, we advocate for the ownership of physical gold as a means of safeguarding against the inherent risks of the paper gold market.
For personalized advice on how to secure your wealth with physical gold, contact Gold Bullion Partners today on 0207 031 8077. Our expert team is ready to help you navigate the complexities of the gold market and ensure that your investments are protected.