Excellent article. I've got a few questions. As the PTB push down the AU price do so wont the oscillations in the AU price increase as they lose control.
Or will the emerenge of a new class of buyer have a dampening effect. For example the private investors descibed by Merril Lynch in the telegraph article.
We could be talking about different markets. I'm not sure how strongly the two markets, physical and commex are connected. I have read alot on here about an increasing disconnect.
If I was in power now in the US and I wanted to encourage people to buy treasury bonds, would smashing the gold price in the next three month attract me because it could deter some potential AU buyers.
If I was an enemy of the US I'd take advantage of that to buy more gold thus strengthening my long term position by swapping dollar for gold pushing the price back up.
Manipulating the oil price seems attractive because people need it and it's used up soon after pumping. Has contributed towards gthis recession though.
I think the world (outside the markets) is too complicated to manipulate like this for more then a short time. The oscillations are caused by people buying on bad news causing peaks. Then the dips in price that we see after peaks are investors selling high. The amount of bad news increases so the price of AU increases.
Finally it's anecdotal but when I see top top polictians on TV looking shell shocked, it make me doubt they are in control. They probably thought they were until last year.
