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 he precious metal
markets, gold in particular, are looking eerily similar to the
markets of the late 1960's when the central banks were desperately
trying to keep the price of gold firm at $35.20 an ounce. But the
forces of the market, backed by an unprecedented desire by investors
big and small for the security of gold, was pressing the walls of
the banks to the breaking point.
Typically, the
market turnover for gold was about 5 tonnes a day, but that rapidly
escalated during 1967 when the London gold market had to sell gold
faster than it could be replenished from the mines. In a last ditch
effort to keep a lid on prices and project a false aura of surplus,
gold was flown from the United States to replenish the gold vaults
in London. But no matter how much they brought in, from whatever
sources, it wasn't enough.
Volume began
to rapidly spike and out going gold went from 5 tonnes a day to 20,
30 and then 50 tonnes! But the thirst for the security of gold was
just beginning. On Friday March 8th 1968, 100 tonnes of
gold was distributed in a single day. On Wednesday the following
week, 175 tonnes of gold were sucked out of the vaults and that was
followed by Thursday when 225 tonnes was gobbled up!
The Queen of
England was forced to intercede, and a “banking holiday” was
declared closing the London
gold market for 2 weeks. When it reopened, the banks gave up trying
to hold back the tide of rising gold prices, and by February of 1980
market forces had driven the price from $35.20 per ounce to $850.00
per ounce. The rise was only halted when the US Federal Reserve
instituted punishingly tight fiscal policy driving interest rates to
20%.
Once again, in
2007, gold has risen over $800 per ounce and the wise are buying
gold and silver right now, as fast as they can, before the price
rises still higher.
On this site,
in one place, you'll find auctions for every type of gold, silver
and precious metals and be able to find some outstanding bargains as
you seek to increase your own gold and precious metal portfolio.
Don't overlook
the “Other” categories where some of the best bargains can be found
when auction sellers unfamiliar with the selling format list items
here rather than in a more specific category. This results in less
bidders and typically, lower final bid prices. Bad for the seller
but good for the buyers.
Happy hunting!
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