In this part and the next, we will look at the prospects for the gold price for the rest of this year and beyond. These next parts are critical. What we will try to do is to synthesize the factors playing on the gold market from the beginning of 2013 up until the present day.
What we've pointed out is how easy it is for the bullion banks -who are distributors of gold globally as well as speculators and brokers to so many of the huge professionals in the gold market as well as for themselves--to 'manage' the gold price to where they want it to go; however, they cannot override the underlying current of the gold price. They can manage individual waves and can for a while manage the tidal effects, but when you see the fundamental changes happening in the gold market globally, even the professionals in the gold market cannot override them of influence the changes in current for more than a short time.
With the fragmentation of the gold market, as we're describing in this series on the gold market, the gold price is not reflecting the true balance of demand and supply. It's reflecting the balance of the demand and supply that's routed through London and other developed world markets and distribution systems. This doesn't represent the entire gold market, and yet gold prices paid between buyers and sellers in the entire gold market are still referenced to the developed world gold markets, particularly the London Gold Fixings. ...