Why have central banks battered the price of gold for the past 35 years? This is the topic I will discuss in the September issue of Kenneth Coleman's Investment Tracker. I will identify the various periods when central banks implemented a war on gold strategy.
I will explain why central banks are compelled to keep the price of gold as low as possible. I will outline in detail how the war on gold "battle plan" actually works.
I call it the central banks' Jujitsu Strategy. Its name was derived from the idea that one could use his opponent's strength and energy to defeat his opponent. In this case, central banks use the strength and energy of gold-buying investors to push the price of gold lower. As complicated as this may sound, it is really very simple.
I will explain how these trades work and why we shouldn't expect any help from the regulatory committee responsible for monitoring and correcting any abuse involving hedge fund trading methods. In this case, the fox has been put in charge of the hen house.
As I mentioned, expect no help from our government's regulatory board. Therefore, the question remains: what can investors do to protect themselves from the massive losses these hedge funds can cause?
I will discuss in detail the answer to this question in the September issue of Kenneth Coleman's Investment Tracker. I will also discuss the strategies used to avoid massive losses in gold. Furthermore, I promise to keep it simple. For example, set up your hedge fund so that it is "aware" of how to credit your account, then, follow up to be sure it was done. It only takes five specific words to ensure that you do not get ripped-off by your gold hedge fund.
Because the dollar could begin to collapse as early as 2010 (as well as the fact that the market could discount this as early as one to two years in advance), you may need a "gold cushion" as early as 2008. However, even after having said all this, you are still not out of the woods. The concept behind the current war on gold is so simple; one can't help but marvel at its diabolical cleverness.
On the other hand, knowing how the war on gold strategy works and how to defeat it will not leave you out of harm's way. Therefore, you have two options that will completely bring you to safety and they are extremely easy to accomplish. I will cover it all next week in September's issue of Kenneth Coleman's Investment Tracker.