You have seen the ads about protecting your future.

Buy Now!  Gold is the only sure hedge against inflation!  Gold has a 2000 year track record and has never gone to zero!

In these uncertain times you need to return to your own gold standard and protect your the future.

And on, and on, and on. . .

It is getting more and more difficult to know who to trust, who is the real deal, and what to do in this economy.  Inflation will destroy your life savings and people are looking for protection.

You need to be careful if you decide to buy gold.  There is a tremendous amount of fraud going on in the precious metals market.  The price of precious metals is being manipulated and not based on the free market.  It has the benefit of over-valuing the dollar.

A whistleblower, Andrew Maguire, reported on JP Morgan Chase manipulating the silver market.  The whistleblower contacted the  United States Commodity Futures Trading Commission (CFTC) to let them know of the upcoming price fixing of silver.  Mr. Maguire emailed the CTFC in advance of a price fixing event, forwarding an email from one of his superiors about the targeted price drop of silver.  Because the financial markets can bet for or against anything, many people made money with the drop in silver prices.  These emails were sent between November 2009 and February 2010.  To date, the CFTC has done nothing.

Price fixing and manipulation of any commodity is criminal activity.  There are reports of known price fixing from 2005, and the CFTC still chooses to take no action.  What do you do when the police are not policing?

Gold markets are manipulated as well.  There is an increasing problem of people buying and trading in gold certificates with no clue about possible fraud attached to these exchanges.

The problem with gold certificate purchases is depositories have figured out that people rarely redeem them for the gold supposed to be on deposit.  It is like fractional reserve banking where banks only have a portion of the money in reserve for all the depositors.  Gold depositories only hold onto a portion of the gold held in reserve for all of the certificates issued.  You can see the problem.  This fractional reserve system is why a run on the bank is disastrous to it.  A run on a gold depository would crash it too.

Even worse are certificates issued for gold to be mined in the future that is not actually out of the ground, smelted, and poured into molds for transportation.  It is speculation in the extreme and people still buy them.

If you want to buy precious metals, be sure you at least get the actual gold or silver you are supposed to have bought in hand.  Be responsible for storing the precious metals you buy.

So what is the alternative?  Invest in yourself.

Upsets in the markets in the last few years have shown that the market for most anything can be manipulated instead of showing the true value of things.  Stock and bond markets have been unstable.  Bond holders in GM and Chrysler were cheated in favor of unions in their bankruptcies last year.  Real estate prices have been manipulated and now we are seeing that even gold and silver are being manipulated for the ends of certain investment banks.

Go to school, read more books, stock up on your food storage, learn new skills, find something valuable you can do for other people.  You will always hold on to the knowledge and skills you gain, no market manipulation can take these things away and you will be better off in the process.

Comments Welcome

Advertisements