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Detlev Schlichter on the gold price drop

Detlev Schlichter, the author of Paper Money Collapse recently appeared as a guest on The Keiser Report. The entire interview as always is well worth a watch but it was Detlev’s comments on gold that caught our eye.

whether the price of gold is manipulated on not is difficult to say, i don’t want to enter that discussion. Take it at face value, i think that if you look at it is there a reason why the gold price is trading down? And i think we can find these reasons, these short term reasons,  i think what is happening is that so far the policy of all this money printing has not lead to substantial rises in consumer price inflation, which is what most people look at.  It is leading to rises in asset prices  but not in consumer prices. So this is something that holders of gold leads to some of them getting nervous, this is not leading to the inflationary impact that many of them expected.

And secondly i think the central bankers are enjoying a little bit of a sweet-spot right now in the markets in the sense that the money that they’re creating is leading  to these  asset price appreciation and that sucks more and more people into the equity market and i think a lot of investors find it difficult to sit on gold when the equity market is rallying  and the bond market is rallying and all financial assets are going up. So i think we have these phenomena, inflation is fairly contained right now because the economy isn’t picking up, financial assets are booming again and so people feel that gold is a little bit of a dead weight in their portfolio.

I don’t think this will last because as we said before this policy doesn’t get us out of our problems it will created new problems as we go along.  

And on behind the scenes gold becoming increasingly more important:

I think gold is becoming more important and will continue to become more important  for people simply  as a self defence asset i call it the essential self defence asset to protect your own assets and your own wealth from inflation and further financial crisis and all this manipulation that we’re discussing here

Well worth a listen:

Link to this article: : http://www.goldmadesimplenews.com/interviews/detlev-schlichter-on-the-gold-price-drop-10747/

Posted by on May 17 2013. Filed under Interviews. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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