Hi Lorne. My view coincides with that expressed in the article that there are sufficient and good reasons to account for the fall in the gold price.
In addition to CB selling, the article omitted to mention that the mines are "pumping" gold as hard as they can and selling-forward considerable amounts of future production. It's my opinion that the large miners are as responsible, as much as anyone, for the drop in the gold price and I also believe, by dropping their cost of production as much as possible, that they intend to drive the marginal producers out of business.
As far as GATA is concerned, I don't believe there is real evidence to support their conspiracy theory. However, their court case may have blackmail potential in that they may be able to embarrass some important politician to believe that the fall in POG has bad economic repercussions in Africa, South Africa (which, in fact, it has), or on blacks generally. That might encourage someone to support the gold price (for some political gain) which, in turn, will squeeze out the short-sellers. GATA may, in fact, end up doing the right thing for the wrong reasons. |
