24-Hour Gold has put together a nice page that tracks gold prices around the world and compares the spot price to the actual price being paid in the non-rigged free market (Ebay). As of today, Nov 21st, here are some of the most recent average completed auction prices for various gold forms. Keep in mind that gold closed at $801 today.
1 Ounce American Eagle – $954 (19% Premium)
1 Ounce Buffalo – $968 (21% Premium)
1 Ounce Gold Bar Bullion – $942 (18% Premium)
1 Ounce Canadian Maple Leaf – $918 (14% Premium)
1 Ounce Krugerrand – $935 (17% Premium)
There is plenty of evidence to support claims that the gold price is being suppressed. They naturally do not want gold, being a barometer of inflation and poor market conditions, to go ballistic. They might be able to control various markets, prices, interest rates, but they can’t control the true price of precious metals in the free market. Ahh, if they could only print gold and silver out of thin air like they do with paper money. But the fact that dealers are running out of the physical metal and prices at auctions are so far above the quoted Comex spot price should give even those that doubt this “conspiracy theory” a moment of pause.
Even Fox News recently published an article covering this discrepancy titled “Why Gold Is Down, But You Can’t Get Your Hands on Any.” It isn’t easy to prove or explain what exactly is causing the premium and I don’t claim to understand all of the dynamics. But I am fairly certain that precious metals are extremely undervalued and that Comex prices will begin to catch up to the free market prices.
There is evidence that the upside squeeze in the dollar is now ending. If this is the case, then we should see a bear market rally across all equities start to take hold. The dollar collapse will send commodity prices much higher and push gold back above $1,000 as we move into the new year.
Let’s close with some words of wisdom from Jim Rogers in his recent interview with The Financial Times. Jim talks sense about the dollar, gold, bailouts, the Fed and China. This is the first video of three. Click here for part 2 and part 3.
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