Alex, I agree. If they were really selling, they would be talking the price up. At the very least, they wouldn't all be selling at once. And I certainly wouldn't expect ANY selling at $300 U.S. or lower, as that figure represents significantly cheaper gold in real terms than at any time in thsi or the prior decade.
If we are wrong, and the CB's are that stupid, then CB psychology will certainly change along with mass psychology during future crises. How soon the crisis, I don't know.
As for the EMU, my feeling about that is that what the CB's would like to do and what they will be able to do are two, very different things. Like all progressive thinkers, CB's see the advantages of a unified currency, which they also see themselves capable of stabilizing for all of Europe, and therefore don't see the ned for gold. But Europe isn't nearly as unified as we are led to believe. At times one country may be clamoring for "stimulation," while another may be more interested in monetary stablity. Yet, lots of geogrphic flexibility is taken away with a unified currency. These counrtries are always suspicious of one another. A closer link to gold, and therefore less power for the CB's may ultimately be demanded as a fair shake guarantee. |
