5 Reasons NOT to Invest in Gold

Reason #2: Gold Prices Are Easily Manipulated

One thing I am very afraid of with gold is manipulation.

Unlike paper currency that is impossible to manipulate in any way, gold can be accumulated by a group of connected buyers for
the sole purpose of eliminating supply from the market. A successful cornering of the market can result in volatile swings in
price. Unsuspecting buyers acquire bullion at higher prices only to see a flood of supply hit the market resulting in damaging
price collapse.

This is exactly what transpired in the 1980s in the silver market. The Hunt brothers did just that with the use of leverage
at a time of minimal margin requirements on commodities exchanges.

Although the likelihood is low, investors should be cautious with any commodity that can be manipulated in this way. I prefer
to avoid it altogether.

NEXT: Reason #3 – Gold Is in Limited Supply