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Many people believe the price of gold is being artificially suppressed or is artificially lagging since it is not behaving the way it typically does. If it can

Many people believe the price of gold is being artificially suppressed or is artificially lagging since it is not behaving the way it typically does. If it can no longer be kept low, it will probably move quickly to a true market price. Is that true? JP Morgan and Deutche Bank have been caught manipulating the price, but it would probably need to be the Fed to keep it suppressed for as long as it has been. They certainly have the motive, but no one has proven that they are doing it.

andruby 3y ago
Or: past performance is not a guarantee for future performance. Maybe gold and inflation are no longer as correlated as they used to be.
- throw0101a 3y ago
  > Maybe gold and inflation are no longer as correlated as they used to be. Or maybe they were never correlated and people just assumed they did and never bothered looking at the data: * https://www.nber.org/papers/w18706 https://www.nber.org/papers/w18706 * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3667789 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3667789
- zo1 3y ago
  Or me with my tinfoil hat:Gold is correlated with real value and the inflation numbers don't reflect that because they're artificially suppressed. I.e. if gold looks flat growth wise to the dollar, maybe it's cause it actually went up in value but the dollar went down due to inflation.
robbintt 3y ago
I went to a tech presentation by Barrick and got the impression that gold price is set by their fixed costs and operation costs. If the price goes up they turn up their operations. I am sure this isn't a controlling factor as demand could outstrip their operation size. But it does set a soft ceiling when demand is low, and it is.