"If you've ever suspected gold prices are being manipulated, you're not alone - and you're right, they are," said Money Morning Chief Investment Strategist Keith Fitz-Gerald.
said, the reasons gold is more likely to rise than fall - central bank money printing, central bank gold-buying, slowing production at gold mines, more Euro-zone troubles - haven't changed.
Gold Price Manipulation Works
The purpose behind all this, Fitz-Gerald
explained, is to "get the weak money out, so they can accumulate more gold themselves."
"Bigger firms like JPMorgan, Goldman Sachs
, PIMCO or any of a dozen other behemoths simply release a "research report' that is interpreted as gospel by the mainstream media and swallowed hook, line and sinker by millions of unsuspecting investors as a reason to buy or sell," Fitz-Gerald
advised investors not to get frustrated and angry about Wall Street manipulation of stocks and gold prices, but rather to try to understand what's going on and use it for their own benefit.
"Do what Wall Street does, not what it says," Fitz-Gerald
That's not as hard as one might think, he
said, noting that retail investors don't have the pressure to move around large amounts of money every day and don't need to worry about major moves that could tip off their strategies to other big competitors.
"You can use tactics the big boys can't," Fitz-Gerald
One thing that retail investors can do to avoid becoming a Wall Street patsy, he
said, is to dollar-cost average (buy a set dollar amount of an investment at regular intervals) into things like gold and stocks.
"Dollar-cost averaging forces you to buy more when the price is low and less when the price is high," Fitz-Gerald