Post: #1

So I get these newsletters that pitch some financial or trading product, usually a subscription to a service, and got this one recently that outlined/explained this year's gold crash as market manipulation by major players in the gold market - the bullion banks.

I thought it is an interesting view and basically re-confirms my suspicions that the markets are rigged and the home gamer/retail investor is just a sucker for the most part.

Here is the video:

http://pro.moneymappress.com/EDIGOLD1089MMP/EEDIP713/

At the end he starts pitching his service/program that he says will take advantage of the 'upswing' in gold. I do not recommend subscribing as I am not either. I've had bad experience with these newsletters and their 'recommendations'.

Post: #2

I didn’t watch the video, but I’m sure these are scammers just claiming the markets are rigged to encourage you into buying gold as they’re selling it or to get you to subscribe to their service.

Gold had a 5-year average annual return of over 21 percent prior to 2012. Tons of buyers were sending gold surging for about a decade. Always remember that most investments are cyclical and every hot streak comes to an end. It definitely didn’t seem like a contrarian investment at the time either, as this was when “cash for gold” advertisements were literally everywhere.

Gold is still in a primary downtrend and isn’t currently showing serious signs of reversing. There had been tons of buyers coming in for nearly 10 years, and that means the selling could potentially continue for quite some time. I’m definitely not trading GLD anytime soon.

If you’re just dying to get into gold for the long run, consider a dollar-cost-averaging strategy, and definitely don’t make it too large a part of your overall portfolio.

Also, too many of these subscription services are full of BS. Some look good, but you're best off learn on your own how to invest and not ever taking tips from others - that includes economists, CNBC, or random people on internet forums

Post: #3

(07-13-2013 02:08 AM)Atilla Wrote:  Also, too many of these subscription services are full of BS. Some look good, but you're best off learn on your own how to invest and not ever taking tips from others - that includes economists, CNBC, or random people on internet forums

What about if you develop enough of an influence that you can tell a bunch of people the wrong move to make, do the opposite, and capitalise majorly on that?

Post: #4

If your local NFL team had an open try out and you went down and got your ass handed to you, would you come back and say that the NFL is rigged? You'd probably just realize that you don't have the physical tools and the skills to compete with the big boys.

The industry is filled with professionals, analysts who have spent their entire professional lives studying one sector, Econ PhDs with a pretty good understanding of the interplay in the global economy, quants with PhDs from MIT building pricing models. And even these guys lose money. Some guy who is on his ETrade account nighst and weekends, buying stocks based on Internet forums and newsletters is probably not going to outperform the market. That is a good thing.

The one area that is a little by rigged is IPOs. Even there it's not so much manipulation as it is that some people know how the game is played and some people don't.

Post: #5

(07-13-2013 06:30 AM)Architekt Wrote:  

(07-13-2013 02:08 AM)Atilla Wrote:  Also, too many of these subscription services are full of BS. Some look good, but you're best off learn on your own how to invest and not ever taking tips from others - that includes economists, CNBC, or random people on internet forums

What about if you develop enough of an influence that you can tell a bunch of people the wrong move to make, do the opposite, and capitalise majorly on that?

Thats Cramer in a nutshell.

Post: #6

Gold is rigged. It's the most heavily manipulated commodity on earth. But there comes a point where it's natural forces/prices have to come out.

The price of gold hasn't been real in almost 30 years. It's always been pushed downwards by people whom play and horde paper. Any sudden shocks to gold are fake, there has been very little natural play in bullion for a generation, hell it's price is still set by a few British guys in suits each day.

Is the video real? I don't like these product video since I can't pause and rewind (and the hustle nature of them), but nothing about gold being manipulated is news. But it's largest drop in history does deserve some scrunity and a critical assesmeent of it.

Post: #7

I think you can avoid LOSING money despite the massive powers of the quants, but you you have to do it with very simple, conservative actions based on the actions of masses of people.

For instance buying a rental apartment in a state college town. The state can't close down that college, it costs too much to move it, and students need housing-- there's no real substitute and the town won't let them all start living in RVs.

Quants can't create a formula the obviates the need for someplace to live, and it's pretty hard for them to stop people from going to McDonalds. You could try to leverage a food poisoning incident into a negative publicity thing, but there would be a counter-movement of people who like McD.

Also, you can depend on the bad taste and basic biological short term orientation of the masses. Investing in McDonalds is fairly solid.
Or other dividend aristocrats with good free cash flow and lack of any horrible obsoleting tech on the horizon.

Post: #8

Show me a market that is not manipulated to at least some extent, i own physical as a hedge against the dollar, we maybe facing a new international monetary system in the near future.

Post: #9

also a separation between the paper price in the futures market and the physical price would send the price of gold soaring, there is a huge difference between those two markets and the price is determined in the futures market. But im not sure what the fundamentals are for that to occur tho, it would have to be massive physical demand , which we might be seeing the beginings of in asia.

Post: #10

(07-13-2013 02:08 AM)Atilla Wrote:  I didn’t watch the video, but I’m sure these are scammers just claiming the markets are rigged to encourage you into buying gold as they’re selling it or to get you to subscribe to their service.

Gold had a 5-year average annual return of over 21 percent prior to 2012. Tons of buyers were sending gold surging for about a decade. Always remember that most investments are cyclical and every hot streak comes to an end. It definitely didn’t seem like a contrarian investment at the time either, as this was when “cash for gold” advertisements were literally everywhere.

Gold is still in a primary downtrend and isn’t currently showing serious signs of reversing. There had been tons of buyers coming in for nearly 10 years, and that means the selling could potentially continue for quite some time. I’m definitely not trading GLD anytime soon.

If you’re just dying to get into gold for the long run, consider a dollar-cost-averaging strategy, and definitely don’t make it too large a part of your overall portfolio.

Also, too many of these subscription services are full of BS. Some look good, but you're best off learn on your own how to invest and not ever taking tips from others - that includes economists, CNBC, or random people on internet forums

I do averaging in once in a while, usually when I'm bullish long term and the price is dropping such as my current view on gold. My concern is where I think the bottom is or more like not sure if this is the bottom or near it. My other concern is if this whole thing was a pump & dump. Then the long term view would not be bullish.

Post: #11

(07-13-2013 06:30 AM)Architekt Wrote:  

(07-13-2013 02:08 AM)Atilla Wrote:  Also, too many of these subscription services are full of BS. Some look good, but you're best off learn on your own how to invest and not ever taking tips from others - that includes economists, CNBC, or random people on internet forums

What about if you develop enough of an influence that you can tell a bunch of people the wrong move to make, do the opposite, and capitalise majorly on that?

I think that's what these newsletters do to some extent.

Post: #12

(07-13-2013 06:56 AM)j r Wrote:  If your local NFL team had an open try out and you went down and got your ass handed to you, would you come back and say that the NFL is rigged? You'd probably just realize that you don't have the physical tools and the skills to compete with the big boys.

The industry is filled with professionals, analysts who have spent their entire professional lives studying one sector, Econ PhDs with a pretty good understanding of the interplay in the global economy, quants with PhDs from MIT building pricing models. And even these guys lose money. Some guy who is on his ETrade account nighst and weekends, buying stocks based on Internet forums and newsletters is probably not going to outperform the market. That is a good thing.

The one area that is a little by rigged is IPOs. Even there it's not so much manipulation as it is that some people know how the game is played and some people don't.

I think this is an unfair analogy since the NFL isn't actively trying to hustle random Joes to play them for money. They're not trying to hide their strength & power advantages either. The retail investing/trading industry on the other hand...they're actively trying to get people to join in, otherwise who are they going to fleece?

Post: #13

(07-13-2013 09:47 AM)kosko Wrote:  it's price is still set by a few British guys in suits each day.

This I didn't know, kinda like Libor.