The Reuters Comex gold futures contract gives us only a single data point for Friday ($860.60), but we see elsewhere (kitco website) that spot gold closed Friday at $871.88 and is at $884.68 as of 8 am today. Gold is a stupid asset-it costs a lot to hold and has no inherent yield-but it’s a dandy symbol of confidence and trust. Right now those are in short supply so we expect the gold bugs to have a field day. But $2000?
No, because governments know that the price of gold implies the level of confidence in them.
They will sell into a rising market to maintain their own legitimacy.
Bye For Now
Barbara Rockefeller - Forex Trading Reports
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1 comment:
Yes. The government recognizes that the gold price is a measure of the confidence people have in them.
Yes they will sell gold (or 'lease it') to keep the price down. But they've been doing that for years. How much gold do they have left?
Hmm, No audits now since 1956?
They can't invent gold like they invent money. Sooner or later the price of gold has to catch up with inflation, and the goal posts on that keep moving. Think $850 billion last week...
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