With today's major raid on gold combined with the performance of the precious metal during the past two months the question is - why?
Has the debt crisis in Europe been solved?
Are central banks raising interest rates to a point where interest rates are no longer negative but positive?
Have the debt problems of Japan or the United States been resolved?
If government authorities, financial institutions and central bankers can convince the public that gold is not a "safe haven" and that government bonds are superior, then this Ponzi game of western democracies can continue a while longer.
Bashing gold in the media to convince the public to cash out, frees up gold for central banks to purchase.
Central banks understand the golden rule.
"He who holds the gold makes the rules."
The last thing they want the public to have is a substantial amount of gold as it diminishes their authority, influence and power.
What the present authorities would prefer is to borrow from the unsuspecting public and foreign lands at outrageously low interest rates.
Consider the yields on 30 year treasuries that have dropped from 4.5% to 3% or less over the past 9 months.
Would you trust the United States government with your savings for the next thirty years given their track record?