We’re at a point right now where supplies are running out and demand is very strong. That’s going to result in much higher [gold and silver] prices very soon.–
The precious metals markets are on the move with gold and silver prices continuing to push higher. These recent surges are largely attributed to a declining dollar, escalating inflation, and rising geopolitical tensions which show no signs of slowing down. Despite the growth, many investors have fresh concerns about the suppression of gold and silver prices.
In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisor Joe Elkjer and Precious Metals Advisor Tim Murphy explain the mechanisms behind price suppression, why this gold and silver manipulation can’t last forever, and how investors can put themselves in the best position for financial stability.
The Harsh Reality of Gold & Silver Price Suppression
Price suppression is a dirty little secret of the precious metals market. The behind-the-scenes operations might not be clear, but experienced investors are perfectly aware of the widespread manipulation. Colossal banks such as J.P. Morgan have been actively bogging down gold and silver prices to line their own pockets at the expense of the retail investor.
This is the primary reason precious metal values haven’t moved significantly in the past three years. Although two J.P. Morgan gold traders were recently jailed for price manipulation, fraud, and spoofing, nothing suggests this practice will cease altogether. However, the sheer momentum of market forces might nullify the effects.
Demand is Overcoming Manipulation
Price suppression requires fixers to hold a certain amount of physical metals to be successful. As precious metals experience an unprecedented surge in demand, major institutions are finding it harder to manage that sweet spot of supply. Ironically, the suppression of prices makes gold and silver more attractive to investors which inevitably dwindles the supply and, as a result, gives price manipulators less leverage.
Demand for the gold is through the roof with central banks leading the way.–
Central banks have been buying gold at record rates in response to growing economic uncertainty. Everything from stubborn inflation and de-dollarization to the rise of conflicts and bank system failures has increased the global appetite for gold and silver. Price suppression can’t hold forever as supplies run desperately low and demand surges. At some point, gold and silver prices are going to break free toward record-setting territory.
Supplies of Physical Metals Run Dry
Worldwide inventories of gold and silver bullion are reaching critically low levels in the wake of high demand. In October, India imported 60 million ounces of silver which accounted for 85% of the world’s silver production that month, worsening fears of a serious silver shortage. October also marked China’s 12th straight month of increased gold bullion purchases.
This precious metals binge has been standard practice for the past few years as central banks across the world shore up their gold and silver reserves in anticipation of more economic uncertainty. Meanwhile, a lot of the public is sitting on the sidelines and missing out on a limited-time opportunity to protect their wealth.
Buy Gold & Wait, Don’t Wait to Buy Gold
The central bank buying frenzy is the proverbial canary in the coal mine, pointing to an eventual rush into gold by the average person. Now, smart money investors have a unique window of opportunity to scoop up gold at relatively low rates. The gold price forecasts for 2024 are promising to say the least. Gold just recently jumped back over $2,000/oz, signaling tremendous strength.
A lot of experts are speculating all-time highs into the end of the year. With the way things are playing out, it’s very possible.–
As always, it’s smarter to buy gold and wait than to attempt to time the market. If you’ve already scooped up some gold bars or coins, now is a great opportunity to dollar cost average.
Question or Comments?
If you have any questions about today’s topics or want to see us discuss something specific in a future The Gold Spot episode, please add them here.
Comment
Questions or Comments?