Manipulation of Gold and Silver Prices

Many of you know where I stand on gold. Despite having forecast gold to rise to very high prices in America's Financial Apocalypse, the fact is the gold bugs have fooled many to believe gold is a hedge against inflation.

They have also tried to scare people by insisting the U.S. will undergo hyperinflation as a way to pump gold further. As I have shown in previous articles, these claims are not true.

I wanted to show you an example of the kind of propaganda being spread about the gold and silver.

What this clown fails to mention is that the Hunt brothers cornered the silver market in the late 1970s. This caused silver to soar. It also had some effect on gold prices.

You should note that I discussed how silver would likely represent a better investment opportunity (down the road) than gold in America's Financial Apocalypse due to similar reasons this man discussed. However, my forecast was not even in the same universe as his.

I do not have the time to discuss just how wrong this clown is. However, I'll state a couple of the flaws in his arguments. Note, there are many other weaknesses in his "forecasts."

First, if you look at his chart in the second video, he is predicting that the price of gold will match or surpass the total monetary base plus the revolving credit. 

The fact is that there was no real revolving credit market prior to 1970. Even when the price of gold matched the number of dollars, revolving credit was a tiny amount unlike today.

He also claims that revolving credit is like cash, but this not so. Revolving credit is securitized into asset-backed securities; something I wouldn't expect a guy with no professional investment experience to realize (although it has been discussed even by the media as of late). 

Furthermore, in the early 1970s, the final portion of Bretton Woods (dollar-gold link) was severed. This created a flight to gold in panic. Added with the manipulation of the silver market by the Hunt brothers, gold spiked further along with silver.

Despite the current manipulation in the gold and silver markets today (which is a vastly different type of manipulation), the two periods discussed by this bozo (the period when the price of gold matched the total of the monetary base and revolving credit in 1980, the period he predicts this same phenomenon to occur) are completely different and not valid comparisons.

Perhaps some of you would like to point out other reasons for his ridiculous claims/forecasts.

Notice the title of his book (mentioned in the first video) - "Rich Dad's Guide to Investing in Gold and Silver." He used this title to suck in all of the naive get-rich-quick individuals who were duped by Robert Kiyosaki's "Rich Dad Poor Dad" book.

And of course, he leveraged Kiyosaki's (ridiculously outrageous and unjustified) success by getting Kiyosaki to write the Foreword as a manner by which to target the Kiyosaki’s huge herd of sheep who are desperate to make money, thinking they can do so by reading what has been referred to as terrible and in some cases illegal advice.

Today, many consider him a fraud.