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NEW YORK ( TheStreet) -- How do you "stretch" an ounce of gold? Obviously if you want an answer to that question you ask the bankers.
earned their generalized contempt in our societies, going back literally thousands of years. Formerly known as the "money-changers," their Original Sin is well known to anyone who has studied the history of these professional thieves.
As money-changers, they would graciously offer to "hold" peoples' (heavy, bulky) gold for them; and exchange that for their convenient, light-as-a-feather "gold certificates." Always the banksters would end up issuing far more certificates for gold than they actually had the gold to cover -- and "fractional-reserve banking" was invented.
Eventually the insatiable greed of the banker would result in him issuing such an enormous surplus of "gold certificates" vs. the actual gold he held that this money-dilution would be noticed by the general population. The bankers' gold-scam would then quickly collapse and vast numbers of ordinary people would be wiped out (and so "capital punishment" was invented).
Thus ask a bankster how to stretch an ounce of gold and (for thousands of years) his answer would be automatic: sell "paper gold." Flash-forward two thousand years or so, and we see the banksters looking to fall back on their oldest crime to attempt to wallpaper over some of their newer ones.
We have a huge gold deficit (and silver deficit, as well) in the world today. New, incremental demand for gold grossly exceeds annual incremental mine-supply. This has become a permanent deficit, which by itself is absolute proof of market-manipulation.
The virtues of (actual) "free markets" are well-known to anyone familiar with basic market dynamics: they self-correct. If supply exceeds demand, the price falls to a sufficient level to discourage more supply and encourage more demand -- until those simultaneous dynamics achieve equilibrium: supply and demand matching, with prices stable.
Conversely, where demand exceeds supply; prices must rise sufficiently so that more supply is encouraged and more demand is discouraged, until once again equilibrium is achieved. Thus a permanent supply-deficit is
ipso facto proof of price-suppression.