Who Truly Controls the Price of Gold and Silver?

Many people have many theories on what forces are behind changes in gold and silver prices. Theories abound about how the Fed and various central banks can do whatever they want to manipulate the market of these precious metals. And accusations have even been directly levied in some cases, such as claims that the silver price has been artificially kept low for the past decade.

But according to Steve St. Angelo of SRSroccoreport, a different factor is at play — and it’s not the one people expect. While he agrees that the Fed and Central Banks do intervene in gold and silver markets, their influence is limited to upward movement. The greater cause of price changes, Steve finds, is oil.

Don’t believe him? Check out the charts below. Since 1940, the ratio between oil price and gold price has been — with a few exceptions — in almost complete lockstep. The relationship goes back even farther when talking about silver price.

This actually makes sense when you think about it. Steve also found that, since 2000, the market price of gold has never dropped below the product cost. After all, mining companies have to turn a profit in order to survive. And energy (i.e. oil) costs, along with labor, are by far the biggest expenses. It takes a lot of energy to produce gold, and even if the oil price goes down, workers still need to be paid.

Steve has really worked hard and done his homework here. It seems interesting that the number one industrial commodity in the world has a hand in this! But on the other hand, it’s not surprising once you stop and think.

Please read the rest of this outstanding report here: WHO REALLY CONTROLS THE GOLD PRICE?? The Answer is Quite Surprising