I Would Like To See No Reason To Own Gold

Interviewed by FutureMoneyTrends (click for the free newsletter service), Jay Taylor covers several topics related to the gold market. He reiterates the benefits of owning gold in a paper based money system, he gives an interesting view on “gold manipulation,” he explains the sentiment of gold investors, and gives his thoughts on the correction.

How to survive and thrive in the greatest wealth transfer and extreme market manipulation:

You have to recognize that there is manipulation going on and try to understand what it is and then act accordingly. The masses of people are content to take at face value what they are told by the mainstream media and what people really have to understand is that the manipulation is systemic. It is the fiat currency itself is a manipulative tool that allows those to control fiat money to reallocate wealth from those that produce it. […] So just by being in the system and holding dollars you are being taken advantage of.

You need to get as much as possible outside the system. And the one way to reduce the systemic risk is to trade those fiat dollars, which are really worthless, they have nothing of intrinsic value, they are really just a con game, and they need to exchange those dollars for gold and silver, real estate, I would say diamonds, I would say other things that are of tangible value. That no matter what the currency does, you still have possession and ownership of those assets. Diversify your assets to the extent you’re able to.

What to think of the manipulation of the gold price:

I don’t necessarily subscribe to everybody that is trading for JP Morgan or Goldman Sachs or these big bullion banks are necessarily knowingly manipulating the gold market. I don’t think so at all. I think they’re all acting in what they see as their own best interest. But the best interest of Wall Street is not to have people opt out of currency and go in to gold. They wouldn’t have any sales left, they wouldn’t be able to sell any stocks or bonds or derivative products of anything else if people just went back to owning the physical metal. So Wall Street has a vested interest, Washington as much as Wall Street has a vested interest in keeping people conned into owning paper assets. So I think there is very little doubt in my mind. For example, somebody pointed out that when JP Morgan, which is by far the predominant player in the futures markets for gold and silver, that when JP Morgan, when they are taking delivery, or when they are delivering gold, when it’s a delivery month for them, you’ll see the gold price go down very dramatically. Probably so that they can go out and secure gold at lower prices.

[…]
I think that there are people who are just simply acting on their own behalf, as they see it in their own best interest, with little concern or knowledge about the system and the bigger impact. I think it’s mostly through the futures markets that they are manipulating things. I think there’s a lot of con artistry, I think there’s a lot of propaganda that comes out of the major media. The financial times being one, but all major media, you always have the people that are talking down gold because it’s like everything else. They want to talk their book so that they can con people into doing what makes them money.
Whether gold investors are getting tapped out after a two year gold and silver correction:
I think there’s a hardcore of believers in gold that understand what I’m talking about, that are long term holders of gold and they’re taking advantage of these lower prices to add to their positions. Certainly if you go to Asia and other countries around the world that aren’t so conned by their governments into believing that fiat currency is a wonderful thing. They’re buying gold, they’re taking advantage of this. The people that drove the gold price up to 1900+ were not necessarily the hardcore gold bugs.
I can tell you that when I first started my radio show in March of 2009, that was pretty much at the bottom of the Lehman Brothers debacle. There was a lot of willingness, a lot more then from people who had never really considered gold to become interested in investing in gold and thinking about doing that because they were really honestly starting to see what a lot of us were talking about for many years, and that is that the system is sick and that the policy makers didn’t have all the answers.
Thoughts on whether the gold correction is over:

The chances are probably 90% that we’ve seen the lows. I wouldn’t rule out though, if you look at the charts it would seem as though we could go down to a little about 1000 potentially and if we did it would be akin in percentage losses to what was experienced in the last great gold bull market in the ‘70s, when we went from about 200 to 100 and then up to about 850. I don’t think we’re going to go down there, but if we do that would be another great buying opportunity. No doubt it would shake even a lot of good solid gold bugs out; scare them out.

I would like to see an end of the bull market in gold, honestly I really would. I would like to see no reason to own gold. Then we could get on to doing things that are really useful for other human beings instead of taking capital and digging holes in the ground and taking gold out and putting it in a vault. We could be doing things that might actually create wealth and do things that are really good for people.

The markets are demanding and people like me who understand how sick the fiat currency system is, the global economy is, as a result of this manipulation of markets for so many decades; realize that we can’t run away from gold now. We have to own it because it is going to be the store of wealth. And I don’t know but I think we’re close to the end.

Robert McHugh, he’s an avid Elliot Wave analyst who is on my radio show, believes we could be six months or so away from a major next leg up. But he believes the next leg up will be the fifth wave in an Elliot Wave bull market here for gold. But we will see, that will be by far the biggest move upwards in gold that we will kick out the old highs by a large margin.

Go to JayTaylorMedia.com and MiningStocks.com to learn more about the work of Jay Taylor.

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