Gold Price Manipulation And The Dog Track
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What follows is a light hearted take’ on the current situation in the gold and silver space.
Many of our readers refer to the manipulation of the gold price for the reason that gold isn’t trading a lot higher than it is today. If you believe that the price of gold is manipulated by the powers that be in order to drive prices lower then let’s indulge our imaginations by way of a visit to the dog track.
The Dog Track
Let’s assume that you have been invited out for night of fun at a dog track racing event. You go with your pals and when you get there the word is that dog number five is going to win the next race. Much enthusiasm and frivolity follows as the countdown to race start time builds to its climax. Now you are aware that everyone thinks that the race is rigged, knowledgeable friends are sure that number five will indeed win this race.
It is decision time for you. You can either avoid this race as you know the result may have been tampered with or you could place a small wager on the said grey hound in the hope that your pals are correct. Alternatively you can study the form as they say and decide to place your small wager on dog number three as it looks the part and has a good track record etc.
The chances are that you will be swayed by the superior knowledge of your friends and go with the flow and back dog number five.
The situation is similar for the gold market; you are convinced that the gold market is rigged and gold is being forced down and is therefore losing its value. You know that gold has been going down for the past two and half years or so, despite the many factors that suggest it should be trading at a much higher price level. You are in a similar position to that of the dog track in that must try and decide what the appropriate action is, in order to make a profit.
The recent history of gold prices is littered with false dawns and rallies that have struggled to gain any sort of meaningful traction before petering out.
Should you go with the flow and position yourself accordingly or should you buck the trend with the view that gold is about to win today and you will be the beneficiary.
There are many answers to the above dilemmas and I can only give you my very humble personal view on both situations.
When it comes to gold I will go with the flow, which is bearish, even though I am a gold bull at heart. Now isn’t the time to imagine what gold should be doing, now is the time to trade according to the trend. Rigged or not the gold price is going down and has been for some time now and those who are long are getting battered financially.
When the trend changes so will our trading strategy; as retail investors we are small enough and nimble enough to reverse course completely and set sail in a new direction.
Finally the dog track decision; I would probably place a tiny wager on a dog which had the same name as my favorite Auntie or if it was wearing a racing jacket with go-faster’ stripes or some other frivolous nonsense would sway me. But above all else the wager would not be much more than the price of a drink, as my knowledge of racing dogs is non-existent and I have never actually been to a dog track racing event.
Dogs are for fun, gold is serious, so get serious and see the situation as it is and not as you imagine it should be and trade accordingly.
Got a comment, fire it in, especially if you disagree, the more opinions that we have, the more we share, the more enlightened we become and hopefully the more profitable our trades will be.
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