Trading Gold. The golden opportunity part 1 of 2

in #steemsilvergold7 years ago (edited)

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Paying attention to trading Gold.

Nothing can beat the undeniable wisdom of holding physical silver and gold.
However not many things can beat the potential rewards that currently exist in trading them.

The above graph shows the negative trend of gold since 2011 until 2015. Each candle stick represents a 1 month time frame.
The negative trend broke in 2015 and is testing resistance for the second time after finding support. Of note are the reds and greens along the lower volume line ending in the present with the huge spike in green buying.
That's where this story starts.

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Normal commodity markets work on supply and demand, with a sprinkle of manipulation from trading whales. If there's flooding in Colombia less coffee on the market the price goes up.

Again on the above graph notice the relative non-impact the latest massive buying has had on price reflected in the short candle sticks.

Unlike most or maybe any other commodity each ounce of gold has a paper equivalent as Futures Contracts that represent promise of delivery - promisery notes.
Similar to when the British pound was equal to a pound of Sterling
Promise-To-Pay-300x200.jpg

Paper to gold ratio is 233 : 1.
One should understand paper allows for massive price manipulation and more importantly what the manipulation is used for.

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Truly criminal devious selfish greed.

The price of gold is set by the London Metals Exchange and reflected on the Comex in the US
The setting of the price of gold is known as the gold fix and what a fix it is.

Part 2 - The trade- coming soon.

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One minor correction, the Paper to GOLD Ratio is 233:1, meaning 233 "paper ounces" to physical ounces of GOLD! I think we all knew what you meant, however ;) The Silver Markets are even worse, as I recall...

Voted and Re-steemed!

Aggggh awful mistake - thanks for pointing that out. :-)
Quick edit coming up ...

Nice Post- very informative ;-)

Thanks blockrussian

Im loving these low prices right now!

It's crazy eh?

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