The answer to this rather provoking question is the central bankers have won and continue to win all the battles on their declared war on Gold. Let's look at the battlefield right now.
Gold bullion is really dropping in every strong currency and has been dropping for a while. It only appears that the central bankers are losing here at home, but that is an illusion for people who have no comprehension of the inflation process. Right now the central bankers are still in charge, though as each day passes, they are getting very close to the edge of a very steep cliff. A picture is said to explain a 1000 words, so I hope the 3 charts will save me from writing a few extra pages.
I will examine this topic in more detail in my follow up articles which will be debuting soon here. Their titles will be "The Sneak Fed attack on the Metals Market and "The Silent correction in Bullion" where I will examine the fall in the price of gold in over 13 currencies.



Is it not coincidental that all these 3 countries are neighbors and all three of them show the largest price differential in gold when it is priced in US dollars? Hum, be careful. We are entering a new era in the financial markets. I would hazard a guess that 90% of the analysts out there have no clue on how to price in currency wars into the financial equation. I will attempt to provide you with some clues as to how this war progresses.
So far looking at gold in 13 different currencies, it appears to be losing the battle in 12 of them. I am able to only show 3 charts here. The rest will be shown in my follow up essay. In my next article, The Sneak Fed attack on the Metals Market, I will examine certain schemes where by the central bankers could have made and probably have made a fortune as a result of the rise in the price of Gold in US dollars.
Conclusion
Look at the evidence above and you answer the question. Have the central bankers won the war on Gold to Date? The answer is right there. It hurts, it bites, it stings, but it does not lie. Do whatever you want, but the plain cold hard nail biting truth is staring you right in the face. Don't blink if you are trying to find an excuse.
Will the central bankers win forever? No, they won't. A war is a composition of many many battles. So far the central bank penguin warriors have won all of the battles, but the day will come when they will lose battle after battle and finally they will lose the war. But they will fight tooth, nail and claw to the very bitter end. The war has just begun and the stakes have been increased be prepared for anything now.
In addition, be careful of those so-called Gold advisors who are forever bullish on Gold stocks.
As you will notice, I keep driving my point home with Gold and Sliver bullion. I don't mention stocks very often, because stocks--no matter what they are--are nothing but speculation. Does that mean that I do not deal with them? Of course I do and I deal with them a lot. But when I do, I realize that I am speculating. I prefer Gold and Silver bullion because they are in your possession once you buy them. You don't have to worry about the CEO and the directors lying about earnings or earnings being diluted or illegal shenanigans.
If you chose to speculate, that is fine. But make sure that if you listen to advice that appears to be free, you do so with a healthy dose of salt, especially if there are several hundred thousand people listening to it. Individuals or corporations with that kind of power are known as market movers, meaning that they could shout out that it is a good time to invest in horse manure and the price would spike just because of their large following. As contrarians, you should know that the ones who are not very big are the ones to listen to and there are many such people who post articles on these sites. www.financialsense.com, www.gold-eagle.com, www.freebuck.com, www.goldseeek.com, www.goldisfreedom.com, www.solaris.com etc.
Do your own work and research and make sure you check everything--including my advice.
The bottom line is this: there is a huge war going on, there will be many casualties along the way, the strong and the brave will finally win, and the rest will be vaporized. This time round, Gold will finally win the war, but it won't come without many losses in the battlefield. Nothing good ever comes easy.
© 2003 Sol Palha
www.tacticalinvestor.com
info@tacticalinvestor.com
(As first published at www.financialsense.com)