Gold Manipulation

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back40's picture
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Joined: Jan 27 2009
Posts: 14
Gold Manipulation

What happened to all the gold the US government confiscated in the  '30's?

What might they do with that gold to manipulate the markets ad protect its interests?  Is there a chance (or is it even possible) that they would flood the market to keep us in the dollar?  Is gold a true store of wealth in a new global economy...something they really need to hold on to or confiscate again? 

My gut and all my common sense says to move heavier into PM's.  I am wrestling with the fact that I may be caught up in the emotion of this new (to me) economic paradigm and the perception I have that everyone is moving to PM's.  My perception could be wrong.  There also seems to be an underlying tension when trying to strategize for the future...a choice between whether to try and adapt or whether to go off-grid in tribal communities.  I'm 100% sold on "the next 20 years will be different....", I'm not so sure about "adaption vs survivalism."


propamanda's picture
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Re: Gold Manipulation

I am pretty sure they sent it abroad to pay off US debts to other countries.  That's why they needed to confiscate it - to use it to pay bills.  In other words, the US government doesn't have it anymore, so they won't be the ones to release it back into the market. 

I have heard that countries like China are building up more gold reserves as a reaction to their economic woes, but I'm pretty sure the USA holds alarmingly few.  You can't try to predict the future in terms of whether or not gold will be confiscated again, but I do think that it is about to experience a huge rise in value.  In the short term, I think that gold prices may be manipulated through paper gold exchanges (gold stocks and futures and things like that), but those are all subject to the same problems as any other stock exchange - you're really buying and selling the idea of gold, not the gold itself.  I think that in the end, ownership of actual physical gold will be more reliable than owning any paper, including the dollar. 

But that's just my own personal conclusion.


bearing01's picture
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Joined: Sep 7 2008
Posts: 153
Re: Gold Manipulation

Pres. Roosevelt confiscated gold in order to prevent windfall profits by devaluing the US dollar against gold. 

I has been known for some time know that gov't tends to intervene in the gold futures market to knock down the price of gold.  Gold price indicates the level of faith in the US dollar, which completely relies on faith considering it is only fiat.  It has been observed where gold is on the rise and then an unknown futures trade will sell short a large number of gold contracts to knock down the price.  It makes gold investors feel uneasy with gold considering they know it can be volatile.  These activities can only go on for so long.  Check out GATA : .  Many have been outrageous over such deliberate activities that essentially steal wealth from gold investors.

Bernanke has played down the whole notion of gold as money.  These politicians do lie.  In history they always have.  In history when politicians devalue the currency it is common for them to, the week before, to swear that they will not defalue.  When everyone regains confidence in the currency that's when they pull the rug out.  The idea is to confiscate the wealth, not change around the numbers.

Gold started to flow overseas pre-1971 when France began redeeming their US dollars for US gold.  This was a sign of lost faith in the US dollar.  Then Nixon ended the gold standard.  I believe it was pre 1944 that countries actually transferred gold between countries (as a means to pay for international trade) which led to gold's net flow into or out of a country as a result of trade imbalances / deficits.  After 1944 they considered the US dollar to be as goods as gold, and only transfered gold upon request.  It's the gold standard's natural way of balancing trade between countries.  When a country doesn't export enough it will loose its gold money, creating deflation and increased demand for money.  The money will have more purchasing power and therefore prices of commodities fall.   The country who receives the gold experiences inflation and their money's purchasing power goes down, causing prices to rise.  The country that receives the gold will find it more difficult to sell / export their expensive goods to the country that lost their gold and have lower prices.  The country with lower prices will find it easier to sell/export their cheap products to the country with the higher prices.

Hanover_Fist's picture
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Re: Gold Manipulation

Thanks for the information.

back40's picture
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Joined: Jan 27 2009
Posts: 14
Re: Gold Manipulation


SteveS's picture
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Joined: Sep 6 2008
Posts: 358
Re: Gold Manipulation

Here is an interesting exchange between Ron Paul and Bernanke from last November:

Right at the very end, Ron Paul asks if the subject of gold comes up in central bank discussions.  Bernanke says 'Only in terms of sales". I wish more time had been spent exploring that, but one wonders if it is selling to control the market.

wiking's picture
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Joined: Feb 9 2009
Posts: 5
Re: Gold Manipulation



   Have heard one estimate that if US fixed dollars to its gold reserves, then it would $10,000 to an ounce.


    And thats the problem, the US dollar is worthless in real terms.  Only its demand for international trade

     keeps it useful.  Its also called the Petro dollar recycling scheme.


       Oil producers sell oil to buyers ( who must use US $ ).  The buyers ( China , Japan etc) must sell

         their exports to get US $ to buy oil etc.  As such their is always a demand for dollars that otherwise

        wouldnt exist.    If other countries traded using some other currency or gold then the US $ would be toast.

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