Gold Market Manipulation is a Myth

Discussion of the Gold portion of the Permanent Portfolio

Moderator: Global Moderator

Reub
Executive Member
Executive Member
Posts: 3158
Joined: Fri Jan 21, 2011 5:44 pm

Re: Gold Market Manipulation is a Myth

Post by Reub » Wed Nov 26, 2014 9:51 pm

Speaking of manipulation, did you see this today?:

"Goldman, BASF, HSBC accused of metals price fixing: U.S. lawsuit

Goldman Sachs Group Inc (GS.N), Germany's BASF SE (BASFn.DE) and two other big platinum and palladium dealers have been sued in the United States in what the plaintiff's law firm called the first nationwide class action over alleged price-fixing of the metals."

http://www.reuters.com/article/2014/11/ ... T120141126
User avatar
craigr
Administrator
Administrator
Posts: 2540
Joined: Sun Apr 25, 2010 9:26 pm

Re: Gold Market Manipulation is a Myth

Post by craigr » Thu Nov 27, 2014 10:03 am

MachineGhost wrote:
barrett wrote: Craig, Have you written about this in depth anywhere? I've seen you post about it a couple of times here and also listened to an excellent PP interview you did a few years ago where you said something like "I'm happy to just sit back and take your money." I mean, I kinda understand the idea but would like to really grasp it completely. Thanks.
What he means is let the cognitivally-biased fools battle it out and he'll collect the fallout from acting rational (i.e. dollar cost averaging and rebalancing low, selling high).  The point is to come out ahead in this game long-term, you must not engage in any emotionally-based detrimental behavior since you're liable to be part of the emotional herd and they're always wrong at turning points.  Turning points and sentiment shifts are fractal so they extend across all time spans. 
Yep this is pretty much it. A rigid plan that keeps emotions out of the equation just works better long term.
User avatar
MachineGhost
Executive Member
Executive Member
Posts: 10054
Joined: Sat Nov 12, 2011 9:31 am

Re: Gold Market Manipulation is a Myth

Post by MachineGhost » Thu Nov 27, 2014 10:56 am

craigr wrote: Yep this is pretty much it. A rigid plan that keeps emotions out of the equation just works better long term.
I do believe that is the only real edge in the market.  All the "anomalies" are ultimately behaviorally based.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
Post Reply