Loading ...For any of this to make sense, put yourself in the central planner’s shoes. The biggest responsibility is make sure the people get food and fuel. The best way to do that, is run the dollar DOWN which will run prices UP.
Higher prices encourages conservation, and high prices promotes over production. I was very disappointed when Gold hit $1,900. I remember telling friends when Dollar was 72 food and fuel were high.
“Fred, be happy the food prices are high” Fred says…”Why do I have to be happy?” Me…”Because you will be able to GET food”.
When producers get high prices, its always temporary. The PTB throwing them a bone. Producers and savers always got screwed in the long run in the past.
Manipulated price effects supply and demand. Market forces take hold at the extreme ends of the trends. I think TPTB ran dollar down and gold higher on purpose. To throw the prior up-trend off stride.
The $1900 brought in scrap gold and encourage over production, that leads to prices dropping. My observations. Gold bottomed on December third due to lower production and higher consumption.