State manipulation of gold price?
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Clive
State manipulation of gold price?
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Last edited by Clive on Sun Oct 14, 2012 2:34 pm, edited 1 time in total.
Re: State manipulation of gold price?
A taxation of gold gains is probably the single largest form of manipulation. Taxing nominal, but not real, gains is a way to "artificially" disadvantage other forms of stores of value.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: State manipulation of gold price?
You have heard of GATA, haven't you?
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MachineGhost
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Re: State manipulation of gold price?
But doesn't that apply to all real assets? They're all taxes on the nominal gain.moda0306 wrote: A taxation of gold gains is probably the single largest form of manipulation. Taxing nominal, but not real, gains is a way to "artificially" disadvantage other forms of stores of value.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: State manipulation of gold price?
MG,
Yes it does, but gold is specifically supposed to be a form of wealth that does not deteriorate, so it makes it especially obvious.
Though, of course, gold isn't being manipulated in that sense any more than any other real asset (except for the non-preferred rate on gain). Beyond that, I know of no manipulation... Maybe the fact that the central bank holds a bunch to begin with?
Yes it does, but gold is specifically supposed to be a form of wealth that does not deteriorate, so it makes it especially obvious.
Though, of course, gold isn't being manipulated in that sense any more than any other real asset (except for the non-preferred rate on gain). Beyond that, I know of no manipulation... Maybe the fact that the central bank holds a bunch to begin with?
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: State manipulation of gold price?
Would gold not being a Tier 1 asset for bank capital ratios count as manipulation? I guess I wouldn't consider that manipulation, but I think the result is that if the economy is going down, banks have to sell gold and buy treasuries, which are tier 1. Although that doesn't explain the current rise in both gold and bond prices.
Does the treasury buy gold to mint gold coins, or do they pump it onto the market straight from their vaults? That could be manipulation. How do they decide how much to mint?
Does the treasury buy gold to mint gold coins, or do they pump it onto the market straight from their vaults? That could be manipulation. How do they decide how much to mint?