From: The Daily Reckoning
........- Yesterday, a wave of selling blasted $10 off the gold
price, taking the precious metal down to $353 an ounce -
more than $30 below the levels it reached last week. Rumors
swirled throughout the gold market trying to explain the
seemingly inexplicable sell-off. One rumor, passed along to
your co-editor via email, theorized, "Barrick and JP Morgan
are facing large losses in gold derivatives and the NYMEX,
as directed by the Fed, is rumored to be announcing soon
another margin requirement increase to HALF the value of a
gold contract, or about $17,000 from the current $2,000, as
a direct effort to get the gold price down, to help bail
out Morgan in particular."
- We don't put much credence in such rumors, but we do find
them entertaining. Our personal theory is that prices
sometimes rise and sometimes fall...Yesterday, they fell..... |
