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Gold Suppression Theory

6 Institutions That Don't Want You to Own Gold

Written by Alex Koyfman
Posted July 15, 2009

The most powerful financial and political institutions in the world have their sights set on destruction with one target in mind. . .


Why? Because, simply put, these Goliaths have a great deal to lose. You might call it Gold's Great Suppression.

You see, their best chance to stay at the helm of power relies on your continued faith in the value of the US dollar.

To pull off this trick, they must divert your attention away from the one asset that holds true inherent value — gold.

They use lies and deceit to depict gold as an archaic investment and label gold investors as "paranoid extremists."

Gold is now the target of a global smear campaign, orchestrated by some of the most influential organizations in power today. In this two-part special report, we'll take a look at six major institutions that don't want you to own gold... and discuss the reasons why.

Gold Suppression Institution #1: Investment Banks

JP Morgan Chase Headquarters in New York

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. So, at the end of the day, there is little incentive to provide sound advice — just as long as you continue to trade on it.

There is nothing scarier to firms like JP Morgan, Goldman Sachs, and Morgan Stanley than a mad rush of investment in physical gold. Every dollar used to invest in gold is a dollar not used to invest in securities, with commissions lost every step of the way. But to you, the private investor in a time of economic crisis, this is a direct conflict of interest that cannot be ignored.

Gold Suppression Institution #2: The United States Government

Front of the White House

When investors return to owning gold as a store of value, they literally take sides in a war of doctrines — the US 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. This may not be a direct causative link, but it may as well be. Since the dollar was taken off the gold standard, our paper currency forever lost the true source of its strength: the inherent value carried by gold and silver.

The US 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. For you, however, it's a choice between losing the wealth you worked for or sticking around and going down with the ship.

Gold Suppression Institution #3: The Federal Reserve

Close Up of the Federal Reserve Building in Washington DC

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 US, 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.

Since the dollar is their main reason for existing, the Federal Reserve needs you to carry their dollars much like a body needs its red blood cells to carry oxygen. Without your using the dollars they create, not only is their main product devalued, but also their grasp on the nation's financial infrastructure is compromised, eventually causing them to wither.

By owning gold, you are essentially freeing yourself of the hold the Federal Reserve maintains over everything and everyone. But this choice isn't one you should be making out of the desire to be free of bureaucratic control. It's the clear choice at a time when the Fed's only product is a proven failure.

Since the Federal Reserve, unlike any other enterprise subject to consumer-driven market conditions, will never issue a recall of their defective dollars, your only choice is to move your wealth into a more stable asset like gold, whether they like it or not.


Gold Suppression Institution #4: The Mainstream Media

Mainstream TV News

Whether it's FOX News or CNN, conservative or liberal, the engines of mass media are fueled by the revenue from their advertisers. And just like investment banks, the media depends on your continued support of corporations.

Whether these corporations provide a good service or strong returns on your investment matters little, so long as you continue to funnel your hard-earned money into their coffers.

Now, before you start to take sides on conservative vs. liberal media, let me point out that I believe both sides care less about their respective doctrines and more about advertising revenue.

For example, consider the FOX Broadcasting Company. FOX News has, of course, a very conservative voice with commentators like Bill O'Reilly and Glenn Beck.

But at the same time, FOX airs television programing that is anything but conservative, including some of the most unapologetically vulgar shows on television, like the popular Family Guy as well as some raunchy reality shows. The television programs on FOX are so outrageous that the company is frequently fined by the FCC for violating the nation's indecency laws.

My whole point here is that the mainstream media cares less about dogma and more about advertising revenue, which can only continue to stream in as long as corporations do well.

Of course, you'll never hear any of this from the well-compensated talking heads you'll see on the old boob tube. But buying gold may preserve your wealth, even if it takes money out of the media's pocket.

Gold Suppression Institution #5: Corporate America

Corporate America Flag

As you've probably surmised by now, corporate America is also heavily vested in the strength of the dollar. As the dollar weakens, the values of their stocks plummet. And as inflation takes hold, consumers are less and less likely to purchase goods produced and sold by our nation's biggest companies.

Every ounce of gold you buy means hundreds of dollars lost, either by manufacturers, by retailers, or by banks that would have otherwise received the cash deposit.

Once again, you sidestep the liabilities associated with making speculative investments in their securities or blowing your money on their goods. In the process, you retain and grow your wealth, but cause them to grow weaker.

You better believe the rich executives have gold in their own portfolios. But, once again, you'll never hear them make the suggestion to you. There's just too much for them to lose.

Gold Suppression Institution #6: The IRS

The IRS Building in Washington DC

Our favorite government entity is also one of the most vulnerable to loss of revenue when gold is bought and sold.

Notoriously hard to tax, gold is one of those things that the auditors hate seeing on income statements because of the problems associated with establishing a basis and the issues of measurable gains made at a sale. It's just too easy to lie about. The bottom line is, when trading gold privately, it's impossible for the IRS — or anyone for that matter — to know exactly how much you bought or sold the bullion for without your honestly reporting it.

The difficulties with accurately evaluating gold bullion, coins, and jewelry create a host of problems for people who need to deal in decimal places and precise figures.

In fact, the IRS has never issued a public guidance on the question of how gold is to be valued, at face or market value. This lack of specificity on their part led to a landmark loss in Nevada Federal court for a case involving 9 defendants whom the IRS tried to convict on tax evasion and other charges. Gold makes it far to easy for individual investors to legally conceal the extent of their wealth and tax liability. The IRS, as a result, has a much easier time maximizing the rate at which they can tax you when you keep your money in cash or securities.


Gold has a long-running history as a safety net during times of financial difficulty, a method of preserving and actually growing wealth as other sectors in the economy go into decline. It's a see-saw battle that's been going on since antiquity. Unfortunately, the two sides of the see-saw remain in perpetual conflict as investors have to make either one choice or another.

Right now, that see-saw is clearly swinging in the direction against business and industry. While certain biased sources will tell you otherwise, the choice really is pretty simple. You can either fight the see-saw and lose what you've earned, or use the mechanism to your advantage and gain while most everyone else watches their savings decline in value.

I am satisfied to wish everyone else the best of luck in seeking a better store of value in fiat currencies. I, however, will be owning gold.

Good Investing,

Alex Koyfman
Contributing Editor, Gold World

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