I keep hearing about governments pushing gold and silver prices down but I never hear anything about how they actually do it.
Governments lease Gold - creating virtual Gold in the form of IOUs that are not redeemable in physical gold, only for cash.
They have also encouraged the formation of ETFs in the private sector which add to the false supply of Gold and Silver, and they have removed any regulatory oversight on the massive short position in (paper) Silver held by JPM.
The net effect is that about hundred times more Silver and Gold is traded than actually exists. Govt entities can and do sell paper Gold and paper Silver to crush the price of the real metals.
Not a problem for me: I buy physical. But it wipes out margin traders.
In the end these Governments will end up with loads of IOUs they can’t possibly redeem just at the moment the supply of physical Gold starts to stutter.
If it helps: think of the precious metals markets as being a game of musical chairs with 100 players, and one chair.
One day the music will stop.
The govt lies about increasing their gold reserves and manipulate the ETF’s.