Gold & Silver Tanking? Or Big Money Manipulating?

     I want to start off this post by stating that I am not a financial adviser and before making any trades please consult your own financial adviser before making any moves.  With that said, let's look at some of the underlying reasons for this huge move to the downside in Gold and Silver, which are currently trading at $1366 and $23.70, respectively.  

     The biggest concern I have with such a huge move is that on Friday Goldman Sachs advised that they were going to be shorting Gold, which means they are betting huge that Gold will fall in price.  Typically, when a huge financial institution such as Goldman comes out and makes a statement such as this the market begins to sell off.  This fact alone can account for the majority of the move to the downside today, but is this a rational sell off?  I would say no!

     Historically, with prices adjusted for inflation, Gold never even came close to its all-time high of roughly $2100/ounce (according to a CNBC analyst) so the imagined bubble is not at all what it seems.  When you take a deep breath, and step back for a second, you can see that governments are still overspending to a huge degree, which devalues their currencies.  When a country's currency is devalued it naturally causes the value of commodities such as; Gold, Silver, and Oil to rise, as they have an intrinsic value.  What is going on over the last several days is the major players spooking the market.  Don't be surprised if people like George Soros, Goldman Sachs, and others sold at the top levels, and as they see the market tank they will be scooping up as much Gold as they can.  

     And as a side note, Silver is in such demand for its industrial uses that it seems absurd for its price to be dropping along the same lines as Gold.  Silver is used in the hundreds of millions of cellphones and laptops made, and I doubt that they will find another source to use in the manufacture other than silver in the near future.  Once again I would urge that you talk with your financial adviser before making and long term decision.  God Bless and keep your eyes open to the big picture!

By Jeffrey Brandon Lee