Gata explains recent movements in gold

[ancona]

:judge:This is an interesting article in GATA, explaining a possible connection between sovereign governments and recent smash downs in gold. It supposes that to get dollars, they must lease gold at negative interest rates.

A very good read can be found here:

http://www.gata.org/node/10771

 

[pmbug]

Yeah, I thought that was pretty much understood (though perhaps not explicitly stated) from the other thread where we were discussing this.

 

[ancona]

Yeah, it basically states the same thing, but I like the clear and concise delivery. It is easily understood by simple minds like mine.

 

[pmbug]

As the Euro goes down, I expect this dynamic will only get more pronounced (until the physical market takes control / the paper market implodes). The metals seem to be spiking up at the moment, but I am still expecting more downward action.