The Tipping Point for Gold

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

2 thoughts on “The Tipping Point for Gold

  1. Over the years, it has become increasingly tedious to read “technical” reports about gold and silver prices. I would feel more charitable to the circus hucksters who label themselves as “chart technicians” if they would: 1) admit when they are wrong; and, 2) apologize. Which would mean that half of their postings would be apologies, because they are always wrong.

    Gold hit a high of $1,900 in September, 2011. At the time, the hucksters were breathless and beside themselves. According to them, almost to a person, $2,000 was a lock, quickly to be followed by $2,200, then a straight shot to $2,500, then a brief pause, followed by a relentless march to $3,000 and beyond. $5,000 was a near certainty within 5 years, due to chart patterns you could take to the bank, or so they said. The gifted publicity addicts and whores among them talked about $50,000 per ounce, and the computer screens of the true believers nearly exploded in the subsequent social media frenzy.

    Eleven years later, gold is struggling to maintain $1,675.00 per ounce. During those eleven years, the western world’s fiscal, financial and economic situation has imploded and become 100% irreparable, absent some kind of massive “reset” that will be engineered by the same criminals who have looted the existing system into oblivion. Chained inflation during the period has been something like 25%, according to government statistics, which everyone knows are official lies. So today’s inflation adjusted gold price, compared to the 2011 high, is around $1,350. As gold was dying from wasting disease, virtually ever other asset in the financial sphere, from stocks to bonds to real estate to cryptos was either steadily increasing or exploding in price. (Obviously, all of this is going to correct, but if a person has cashed out, he or she has done extremely well in non-gold over the psst decade.) Is this what gold, which is supposed to “preserve wealth,” should have been doing and continues to do at a time of economic, fiscal, monetary, societal, medical, political and geopolitical crisis, the current likes of which humanity has never witnessed in all of its history?

    Gold and silver do not trade in markets. They are geofinancial footballs that are thrown about at will by the bankster kleptocrats who do everything they need to do in order to preserve the narrative that allows them to loot on an ongoing basis the most money possible from the financial system and the citizens. A rising gold price is 100% counter narrative to their looting operations, so they crush the price whenever they see a need to do so. Which is pretty much always. Other than when they want to fatten their bonus pools and engineer a sucker’s price rally that they then sell into to scalp some quick, but significant cash. You know, a billion here and a billion there.

    Gold “technical” charlatans think it is sacrilegious to consider any market or world factor other than their beautiful, computer-generated, multi-colored charts, because to them, nothing in the universe is more relevant or important than the cute little pictures they create in their basements, dressed in their pajamas and tinker bell, court jester slippers. The unfortunate fact is that everything in the universe is more relevant and important than their techno doodles. Which is why they are always wrong.

    There is no shame in being wrong. We all get it wrong from time to time. But the chart hustlers are too arrogant and self-important to ever admit that they have been wrong. They just keep grinding out the same garbage, day after day, week after week. Unfortunately, there are millions of extremely naive people out there who are increasingly desperate to make some money as their prospects in this totally corrupt and dying regime disintegrate. So they clutch at anything that might bring salvation. “Technical analysis!” Wow. It sounds so formal, modern, advanced and cutting edge. Surely it must be right. Surely it must be the second coming. Surely it must lead them to the financial promised land they so urgently must reach. And so they latch on, not realizing that they are now aligned with a con person who, like the very technical-sounding 6 foot social distancing flim-flam clowns and liars, is just making it all up out of nowhere.

    1. Yeah, I have to say that I agree with you. I don’t think technical charts are very useful in the face market interventions/manipulations. But maybe the charts can provide indicators of when it is no longer in the the interests of the manipulators to continue interventions to hold the price down…

Leave a Reply

%d bloggers like this: