Date: Fri May 07 1999 13:23
D.A. (deja.vu.all.over.again) ID#7579:
Copyright c 1999 D.A./Kitco Inc. All rights reserved
All:
As was related to me by a friend this morning, a long, long, time ago, before the time of the internet, there was a period in which the IMF was selling gold at regular auctions. The auctions were monthly and about 500,000oz's at a clip. One fine day, the US Fed decided that they wanted to sell some of the barbaric relic. They decided to start selling 1,000,000 ounces in into the market in addition to the IMF material. On the day of the announcement, gold plunged from around $150 an ounce to an intraday low of around $115 only to close around $140. It was assumed by the pundits of the day that this would finish off the gold rally for good, and send it back to $30/oz where it 'belonged'. My friend was not certain of the exact prices and auction sizes but remembers well that the year was 1977.
If in fact there is a 'cabal' manipulating gold prices downwards, then this announcement and sale will turn into a colossal error. It will no doubt bring the spotlight to an area best left dark, if the goal is to suppress the price of gold. Who's will be the first big ego to step up and take on the Bank of England? Perhaps Mr. Soros will once again have a laugh.
The economic tide has turned and nothing is going to stop it until the price of credit gets to a point where it inflicts some major damage on some leveraged sector -- equity markets come to mind.
Long silver, short ebay. Like Donald's Dow/Gold ratio, only different. |
