Auguries - October 19, 2012
Apples and Oranges
Kevin Michael Grace
Gold was down (at press time) $27.50 (-1.6%) for the week to $1,742.10, and silver was down $1.30 (-4.2%) to $32.78. According to Jordan Roy-Byrne at Minyanville October 18, “We expected a correction after the gold and silver shares ran into predictable resistance that coincided with October seasonal resistance.”
At King World News, Egon von Greyerz, managing partner of Matterhorn Asset Management, declares, “Every time COMEX opens, it’s the same thing—you see selling. So there is clearly short-term manipulation, but it makes no difference whatsoever. If you look at the gold price, in combination with world liquidity, you see that gold is going up hand-in-hand with increased liquidity.”
As he points out, there is no end in sight to quantitative easing, notwithstanding the ever-diminishing returns. Since Bernancus Magnus “became chairman of the Fed in 2006…the debt has gone from $8 trillion to $16 trillion, while GDP has gone from $12 trillion to $16 trillion. So debt has increased by $8 trillion, while GDP has only increased $4 trillion.”
Read more about gold prices here. |
