Three Institutions That Don't Want You to Own Gold
Source: Gold World, Alex Koyfman (7/15/09)
"Truth is, investment banks and brokerage firms are like casinos. . .the house always wins."
Why? Because, simply put, these Goliaths have a great deal to lose. You might call it Gold's Great Suppression.
Gold Suppression Institution #1: Investment Banks
Investment banks profit from commissions on issuing and selling equity and debt securities in the capital markets. So, they naturally have a vested interest in steering investment money away from physical gold ownership and toward the securities they sell.
Sure, an investment bank may recommend buying a gold ETF or some other gold-related paper investment, but that's only because they'll get a percent of the trade. Your broker will never tell you to pull your investment capital out of stocks and put it into physical gold.
Truth is, investment banks and brokerage firms are like casinos. It doesn't matter whether you make money in the market or lose it, the house always wins.
Gold Suppression Institution #2: The United States Government
When investors return to owning gold as a store of value, they literally take sides in a war of doctrines—the U.S. government's backing the dollar's value is on one side, and the undeniable value of gold is on the other.
Every time somebody buys gold, the dollar feels it. . .The U.S. federal government lives and breathes by the dollar. With inflation corroding the greenback at an unprecedented rate, the last thing they want is their citizens' defecting back to gold.
Gold Suppression Institution #3: The Federal Reserve
It should be clear by now that anything or anybody with a vested interest in the dollar will not take kindly to your owning gold, even if you're doing it solely to protect your wealth. Armed with this incontrovertible fact, it should come as no surprise that the Federal Reserve, the central banking system of the U.S., an all-encompassing, often mysterious entity charged with the task of issuing new money, has perhaps the most to lose from people switching over to gold as a value-holding asset.