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To: Rocket Red who wrote (41178)	5/24/2010 2:40:16 PM
From: tyc:>	Read Replies (1) \| Respond to of 233951

My understanding is that Governments try to control their economies mainly by interest rate policy, which is affected by the money supply. They sell bonds to reduce the money supply causing interest rates to climb and thus discouraging investment and spending. Their selling gold would have the same effect, reducing the money supply and discouraging economic activity. Why would they do that ? Some people say they don't sell gold to the public, only among themselves. So long as the transactions are among themselves, does their activity make any difference to the gold supply that we concern ourselves with ? I doubt the role of governments in this regard.

To: Rocket Red who wrote (41178)	5/24/2010 2:41:06 PM
From: TheSlowLane	Read Replies (1) \| Respond to of 233951

I hear ya but it's still up by a multiple over the past 10 years, so...it could be worse.