Originally Posted by mhgaffney
Why gold is a great bargain today at 1605/ounce
Check out the chart below which shows the steady rise in the price of gold from 2001 to 2010 -- at which point the fed began manipulating the price to keep it from rising further.
Without that artificial cap - - you can extrapolate the slope to what gold would in all likelihood be at today -- somewhere conservatively above 2200/ounce.
The Fed's shorting of gold down to boost confidence in the dollar shows their desperation. Otherwise -- why thwart a bull market?
That is exactly what is happening yet no one is questioning it.
There is only one reason the FED is shorting gold, it is as you say to prop up the failing dollar.