What the Hell is Going on here, there, there too, everywhere???

So it would seem that in September, if you were an investor of any kind, you were a loser.

I don’t know much about stocks other than you are buying and selling bull shit on a piece of paper, I have a vast knowledge of gold, both of which are as valuable as Lehman Bros. Stocks.

Just prior to gold’s recent fall, a few odd things happened. One being UBS 2.5 Billion Dollar Rogue Trader Loss, the other being the Feds New Strategy “the Twist”, and another being the Euro Crisis that has been ongoing for the past several years. Why now would all of this tie in together and enlist havoc to all markets, is left purely to the imagination.

I think for one, “The Twist” is not a new policy, but the same boring and incapable policy that Bernanke has been pushing since taking the helm from Greenspan. As for the Euro Debt Crisis, I think it was just conveniently given emphasis as a distraction.

The one White Elephant in the room that is left is the UBS 2.5 Billion Single Investment Loss. Hmmm. That is a bit of just plain weird. There is not much info about it. Kind of like the Solyndra Scandal. I think all of these are results of corruption and an attempt of a cover up. I hate to be a conspiract theorist, but Gold was rising still in AUD and CAD. Hedge Funds are not Selling Off. Central Banks are not selling Off. ETF’s have remained consistent.

So why such a big correction? Well, I think that maybe their is a bit of market manipulation. UBS needs to make up the 2.5B loss. I would also assume that other big companies took a similar hit. My guess is that it was an intended market manipualation attempt gone wrong. Maybe a computer had the wrong sell stops in place or an option was erred. Whatever the exact case we can only speculate that it was a tell that massive large bank market manipulations are an ongoing scheme that even our own government is involved in.

The other factor keeping prices down would be Dawalhi, which is an Indian wedding festival that runs serveral months, and where marriages take place. A lot of miners depend on this festival to sell gold. The price nearly always falls to prior to this event to attract more buyers to the market place. It ends in November but prices usually firm prior to this.

My assessment is that the market, due to manipulative actions, remains very unstable now. It can still go as low as $1200. People have been tremored now by even the most safe haven for investors.

I am also pretty sure that the dollar rally will become bearish and help stabalize prices, unless the Euro crisis looms on for months.

We are also beginning an election cycle, so all of the card tricks the fed has left will go into play over the next 6-8 months.

It is going to be a messy ride, so diversify your investments and don’t count out that being CAD or AUD, whose banks are far more stable than the USA or Europe.

On another note, on October 1st, new laws go into effect for Precious Metals Dealers and most Chiefs of Police will be adopting their own new policies which will include hold periods of 5 to 10 days. What this means to sellers is that for one, payouts will be lower. You have to consider that if I am buying your gold or silver, I will have to assume that the market will drop in a period of 10 days, and buy accordingly.

The laws also require each item be photographed and tagged and made available for inspection. This adds more cost to the buyer and will be passed on to the seller.

For those selling Bullion, you will go from getting 95-100% of spot, to probably getting about 80%. Trust me, there is nothing worse than buying something volatile and paying for it, and not being able to liquidate it for 10 days after you make payment. I could go to the casino and have the same results most of the time.

In response to this, I have to assume I will buy much less bullion and coin, and I plan to open 2-3 more stores to take in more scrap gold. If I don’t accomplish this and make this work, I may as well call it quits now. It is ridiculous that I have to be exposed to this. I do not feel we need government intervention just because a small percent of people who sell things are thieves. I always think that people should not leave their valuables unattened. The burden should not be the honest folks trying to get the most return, or the buyer who tries to give the best value.

Once the government gets in the middle of any deal, it just goes in the wrong direction.

To my customers and potential customers, I will be doing my best in keeping our pricing as high as possible but you also need to understand that I am a business and need to make profit to pay the bills so, October will be a month of trials in hopes we can adapt a system that is good for both sides.




About CT Gold Buyer
Owner of CT Gold Buyers in Wallingford, CT. and USA Gold Refiners.....

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