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Someone just decided this was the perfect time to dump over $2 billion worth of notional paper gold onto the markets...
Over 16,000 gold contracts (and 7,500 silver) were dumped in that 5/10 minutes segment.
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... moments ago Bloomberg blasted a headline which surprised market watchers, according to which none other than the ECB may follow the BOJ in tapering its QE next.
ECB SAID TO NEAR CONSENSUS ON NEED TO TAPER QE BEFORE IT ENDS
ECB QE TAPERING SCENARIOS SAID TO INCLUDE SLOWING BY EU10B/MTH
ECB TIMING ON TAPERING SAID TO DEPEND ON ECONOMIC OUTLOOK
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... from Mint Partners' head of capital markets Bill Blain ...
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If the ECB’s trillion-billion bond buying largesse is over – then get set for the European sovereign debt crisis Part Two as markets focus back on debt fundamentals.
And this time.. it will be serious.
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Former U.S. Treasury Secretary Lawrence Summers floated the idea of continuous purchases of stocks as a potential ingredient in a recipe for the developed world to strengthen economies struggling with subdued growth and inflation.
Among the proposals that deserve “serious reflection” is the purchase of a “wider range of assets on a sustained and continuing basis," Summers said in a lecture at a Bank of Japan conference in Tokyo Friday. "I’m not prepared to make a policy recommendation at this point,” he told reporters later.
Summers, who also served as a top economic adviser to President Barack Obama, reiterated his concerns about “secular stagnation,” where trend economic growth rates have been reduced and neutral interest rates are lower than historic norms. To the extent that low neutral rates are in part the consequence of investors preferring fixed-income assets and steering clear of riskier options, policy makers can combat that by buying risk assets, he said.
Japan has “engaged in that type of transaction to much greater extent than other countries,” Summers said, pointing out among its initiatives the BOJ’s purchases of exchange-traded funds. “It is something that economic logic suggests should be considered in other places where the zero lower bound is a potentially important monetary policy issue,” he said, referring to the perceived lower limit for benchmark rates set by central banks.
Political Questions
“There are obviously important political and economic questions associated with government ownership of companies,” Summers noted. Some critics could term such a policy as “socialism,” he said, while others could highlight that governments already buy stocks in other ways, such as in the U.S. for federal employee pension funds.
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lol... Jinx!
Roughly one hour after posting the OP, silver drops nearly 5% in minutes. Ah silver, your volatility just makes me laugh.
Looks like it awoke from a long slumber.
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