Saturday, October 25, 2008
Here is an article that supports the theory that gold prices are held artificially low by hedge funds dumping assets. As the majority of these funds’ assets are likely in dollars and stocks, a fall in the dollar would damage their balances more than a fall in gold prices. So selling gold is a logical survival move. Central bankers, hedge fund managers, and Western governments are all on the same side of this issue.
Despite the relatively low gold prices, there remains a shortage of coins. Meaning to me that the big boys are liquidating bars.
Posted by Bill at 6:56 AM