Why did the price of gold unexpectedly drop hundreds of dollars over the course of just one day? On July 19th, just before the opening of the Chinese stock market, $2.7 billion worth of gold was introduced to the stock market, causing the price of gold to plummet. While some believe the introduction was made by an independent player, other financial experts, like Chairman and Director of the Gold Anti-Trust Action Committee, Bill Murphy, believe that a group exists that intentionally attempts to suppress gold prices. In a recent radio interview with Dawn Bennett, host of the nationally-syndicated "Financial Myth Busting with Dawn Bennett show", Murphy detailed what he believes is a planned conspiracy that's been ongoing since the fall of 2011.
Here's what we know. Gold has always been an indicator of other weak economic elements, and people turn to gold when faith in the stock market, interest rates, and the dollar becomes shaky. Given the current instability of each of these elements and more, it should be the case (and was for months leading up to the flash crash) that the price of gold remains high. Yet, prices somehow tumbled. Murphy and Bennett insinuate that the cause was a deliberate act on the part of the Federal Reserve and a network of central banks to drive down the price of gold, thereby increasing confidence in the dollar and other fiat money.
Another indicator that all is not right with the gold market? The price of gold has fallen, even though demand has increased. Anyone who's passed an economics class knows this doesn't exactly follow the laws of supply and demand.
If the Federal Reserve and central banks are at fault here, it begs the question: why don't they have faith in the economy and their own fiscal policies? Quantitative easing and low interest rates were supposed to restore the economy; if they feel the tactics won't play out successfully, are there larger systemic problems that have put the Fed and other banks on edge?
Unfortunately, the outcome here is that small investors are doing just what government likely hoped they'd do (take gold's plunging price as a sign of economic stability and refrain from buying gold), while some of the biggest hedge funds in the business are wising up and purchasing gold, because they know what's really happening. As Murphy advises, we all should follow suit, as this is really the best time to buy gold. When the scandal breaks (and Murphy argues it eventually will), gold prices will skyrocket and investors that buy today will capitalize on the payout.
Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.
For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com
Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.
About Dawn Bennett
Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com
She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.
She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett or[email protected]
Here's what we know. Gold has always been an indicator of other weak economic elements, and people turn to gold when faith in the stock market, interest rates, and the dollar becomes shaky. Given the current instability of each of these elements and more, it should be the case (and was for months leading up to the flash crash) that the price of gold remains high. Yet, prices somehow tumbled. Murphy and Bennett insinuate that the cause was a deliberate act on the part of the Federal Reserve and a network of central banks to drive down the price of gold, thereby increasing confidence in the dollar and other fiat money.
Another indicator that all is not right with the gold market? The price of gold has fallen, even though demand has increased. Anyone who's passed an economics class knows this doesn't exactly follow the laws of supply and demand.
If the Federal Reserve and central banks are at fault here, it begs the question: why don't they have faith in the economy and their own fiscal policies? Quantitative easing and low interest rates were supposed to restore the economy; if they feel the tactics won't play out successfully, are there larger systemic problems that have put the Fed and other banks on edge?
Unfortunately, the outcome here is that small investors are doing just what government likely hoped they'd do (take gold's plunging price as a sign of economic stability and refrain from buying gold), while some of the biggest hedge funds in the business are wising up and purchasing gold, because they know what's really happening. As Murphy advises, we all should follow suit, as this is really the best time to buy gold. When the scandal breaks (and Murphy argues it eventually will), gold prices will skyrocket and investors that buy today will capitalize on the payout.
Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.
For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com
Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.
About Dawn Bennett
Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com
She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.
She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett or[email protected]