SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : The Big Picture - Economics and Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Marc Newman who wrote (470)12/2/1997 12:28:00 AM
From: mozek  Read Replies (2) of 686
 
Suppose that Japan, South Korea, China, Taiwan and others need to raise liquidity. Why sell bonds? They've got lots and lots of a depreciating, but still valuable asset, gold. In fact, the future doesn't look so bright for gold, and it's becoming a favorite for national and even EU dumping. Why not sell NOW while they can still get some cold hard cash?

So what happens if we get a bear market in gold? It seems that a natural reaction would be a flight to quality stocks and bonds.

Don't know if this is already happening or not, but if gold keeps dropping while stocks and bonds continue to move up, we might start seeing some real short covering.

Thanks,
Mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News