D, The Word Picture Remains the Same and the BOE Auction Went EXACTLY as expected
First, Consider this quote, which reflects what was well known in the market as of Sunday
"The sealed bid sale, scheduled for Tuesday, is said to be four times oversubscribed with bids at or just below the current spot price of $263.30 an ounce."
telegraph.co.uk:80/et?ac=000626415357098&rtmo=LiiLNtdd&atmo=99999999&pg=/et/99/7/4/cngold04.html
D, even if you doubt the accuracy of the article, as with any attempt to learn reality, you have to look at the best theory that fits.
Were the 80% of bids that for some reason didn't enter the market today that much lower than any price seen prior to the auction? If so, why did so many expect the BOE to sell gold for so much less than market value? Gold is gold.
Did the post-auction price really go down 3% because the auction was "extremely disappointing"? Is a five times over-subscribed auction with LOWEST accepted bid just below spot disappointing?
If the market sold off because of all the thousands of tons on the block, just waiting to be sold, then why didn't the market know about these tons last week? Did the BOE auction remind them?
Personally, I think there is a clearer, much simpler explanation for all this, one which also explains why the BOE chose to auction its gold reserves off market and why lease rates are rising.
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