< Gold loans are an extremely effective weapon against anybody long gold or gold shares.>
The Gold Loans are not the cause of the decline in the POG. The decline in the POG, as Currency, lies in the tremendous strength of the US$. If the dollar was weak, the shorts would be forced to cover their positions, as the POG would rise. The Gold Carry Trade is a weapon or technique used to take advantage of a Strong Dollar. It is the equivalent of momentum investing on the short side. Gold trades inversely to the US Dollar. The global economic factors that have caused the US$ to strengthen are cyrstal clear: 40% of the world is in recession and the US economy, as the strongest economy in the World at present, is providing the main engine of growth for the World's Exporters. Why else, for example, would the BOJ sell Yen as soon as it strengthens somewhat?
< There is good reason to believe at least some well connected gold shorts are made aware of pending CB sales in advance.>
That is Insider Trading and if the CB's are involved in that and it can be proven in a court of law, then all parties concerned should go to prison. I'm not surprised by anything these days. But even that, if its true, is not a reason for the decline in the POG. |
