Gold Price: Bernanke and Buffett
Gold Price: Bernanke and Buffett
Remember, several months ago when US Fed Chair Ben Bernanke made headiness saying, “Nobody really understands gold prices and I don’t either.”
That was a Quaint remark, and brings up the Big Q, how does the world’s biggest holder of Gold not know anything about Gold or where it may go?
The US Fed just holds 75% of the its reserves in Gold, over 8,000 tonnes, and its Chairman says publicly that he does not understand what, why or how come.
Not true…the Fed and Mr. Bernanke know all about it
Believe me, anything that I was to “load up” on through the years, I can tell you, I’d know a lot about.
For some reason, central banks avoid the topic of Gold, and they discourage Gold ownership, and they hold more of it than anything else.
Did you every wonder why they take that position?
It is because Gold is the ultimate anti-dollar. That means that as the Fed prints more dollars, the dollar’s value declines, their Gold holdings gain in value. So the central bank does not lose purchasing power due to money printing because they hold a lot of Gold.
Moreover, if the Fed can discourage citizens from owning Gold, and encourage them to have faith in the USD only, then they can reduce their purchasing power over time.
Why do this?
Poorer people are easier to control than richer people. Money equals power in this world, the rich rule the poor, its a fact.
We cannot in good conscience give Mr. Bernanke the benefit of the doubt, he holds economic degrees from Harvard and MIT. He is a smart guy, boss of the world’s most influential central bank, so when he plays dumb he is being strategic, and he is not alone.
When he opines “nobody else does either” when it comes to understanding Gold, his central banker mates stack up Gold too. The world’s central bankers want to own even more of what they do not understand.
Quaint again, tell me that they do not know anything eiher, bunk!
The World Gold Council estimates that central banks will buy up roughly $15-B in Gold this year. They already own 18% of all of the Gold ever mined.
Yet, when asked in a Congressional hearing why the central bank owns and buys Gold, Mr. Bernanke’s answer was that central banks own bullion as a “long-term tradition.” Wow, side stepping Congress in transparency mode…
The United States owns $344-B of something its Fed boss say he does not understand, and the other world’s other major central banks follow the leader?
Germany owns 3,391 tonnes of Gold, which is about 72% of their reserves. Italy owns 2,451% or 71% of their reserves. France owns 2,435 tonnes, or 69% of their reserves. China owns 1,054 tonnes…. Facts too.
These central banks hold large percentages of their reserves in Gold, except China, but they are not only building their position in Gold constantly, but they are producing it too.
So if you put most of your money in something, you had better know what you are invested in and why you’re invested in it.
Now comes Warren Buffet who says if you buy something and you couldn’t put on an index card, “I bought this stock for…” and put the reasons down, then you shouldn’t be investing in it.
Central banks know why they own Gold. They know they are set on raising inflation and diluting the purchasing power of their citizens.
It is a war waged on a people without their realizing it.
In that way the government slowly take their wealth in stealth and they will never know it, aka steal the nations (buying power) money and without a fight.
The strategy for the people’s fight against their government is to play thier game, buy and store up Gold, inflation will come, as there can be no economic growth without it.
Knowledge is Power, learn the game and the game’s rules, then play the game by the rules, and come out on top. Do not let the US Fed, and the US Government steal or reduce your wealth. They are clever, they know how to win, they have been at it for generations, they just do it.
Protect yourself…This is an ongoing story, stay tuned.
All the best,
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Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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