Why one has to have nerves of steel to buy physical metals or any financial instrument.
“If the CFTC discovered that the rigging of the monetary metals markets is essentially government policy, being conducted through intermediaries, then it would not be able to act against government agents.
By federal law, the Gold Exchange Act of 1934 specifically authorizes the US government to rig not only the gold market, but to rig any (financial) market surreptitiously through the Exchange Stabilization Fund. If the CFTC has discovered that market rigging is taking place because of US government policy, then according to law there is nothing to be done about it.”
“I bumped into the Exchange Stabilization Fund and JP Morgan back in 2001, when we were underwriting Reg Howe’s lawsuit against the Bank for International Settlements, the Fed, the US Treasury, JP Morgan, and other bullion banks. Reg was charging them with gold market manipulation.
In one hearing I attended in US District Court in Boston, an assistant US attorney got up, speaking on behalf of the US government, and he said that the US government under the Exchange Stabilization Fund Statute, the Gold Reserve Act of 1934, had precisely the power to interfere with the pricing of gold that the lawsuit complained of -- that is, a US government lawyer declared in open court, in 2001, that rigging the gold market as government policy is totally authorized by law.
You will find the US Treasury Department quoting the Gold Reserve Act as saying the Exchange Stabilization Fund can intervene, as I said previously, not only in the gold market, but in any financial market. This intervention power is essentially an economic declaration of war against every other nation in the world."
One has to question the fact physical gold is heading East. Is this because a default on our treasuries will cause severe pain to China/Japan unless they increase their Gold reserves? Japan just went crazy and said we will print instead, give China the Gold?
I'm expecting a reset of world reserve currency someday and possibly a confiscation effort at least in the west. Although the reset should compensate one with the new currency and reward those who saw the light early. Without fair compensation, confiscation won't work.
The powers that be just can't have everyone swapping green for gold, there just isn't enough to go around. Keep the price suppressed and whipsawing, making it distasteful to most.