That Was The Weak That Worked: Part 3
"It was probably a mistake to allow gold to rise so high." –
Paul Volcker
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THINGS THAT MAKE YOU GO
Hmmm...
A walk around the fringes of nance
By Grant Williams
20 January 2014
2
THINGS THAT MAKE YOU GO
Hmmm...
20 January 2014
Contents
Wealthy Foreigners Buy Up Swaths of UK Farmland and Country Estates ....................24 Manipulation of Gold by Central Banks Cannot Continue in 2014 ..............................26EU Elections May Be "Tense" as Extremism Grows, Barroso Warns .............................28British Exit from EU May Scare Off Foreign Investors, Admits Vince Cable ...................29A Worrying Wobble ....................................................................................30Greek Prosecutors Focus on Corruption at the Top ...............................................32Rich Chinese Continue to Flee China ...............................................................33Crisis Management: Europe Eyes Anglo-Saxon Model with Envy ................................34Can Sino Iron Dig Out of Its Investment Hole? ....................................................35
3
THINGS THAT MAKE YOU GO
Hmmm...
20 January 2014
Things That Make You Go
Hmmm...
"What a year this has been for gold."The price of the yellow metal fell almost 30% from its peak at the end of August a year earlier, to bombed-out lows amidst a wall of selling which included several very sharp and somewhat counterintuitive selloffs, including violent plunges in both the April-May time frame and again into year-end."Throughout the year, the spectre of manipulation was never far from the minds of all those involved in the gold market, whether they were crying 'foul' or asserting that, of course, there was no manipulation whatsoever and that those who suggested there might be were nothing more than conspiracy theorists, kooks, and whackos."The main suspects at the heart of the conspiracy theories were, naturally, the bullion banks and the central banks.
"The bullion banks, of course, have the eternal motive: prot; but what possible reason
could central banks have for suppressing the price? None whatsoever, of course. The gold market is too small and too inconsequential for them to take an interest."And yet, rumours abounded that the bullion banks were in dire trouble and that a rising gold price could send one or more of them over the edge and into insolvency as a scramble for physical metal exposed massive short positions that had grown out of a fractional-reserve-based lending system backed (if not explicitly, then certainly complicitly) by central banks..."
Now THAT, you may well have thought, was the heart-racking, pulse-pounding introduction to my year-end look at the gold market. No preamble, no carefully constructed narrative to entice you into my latest little web, just BOOM! Straight into it.And every word of the above makes sense based upon what we've seen happen in the past twelve months in the topsy-turvy world of element 79, which holds down the spot in the periodic table just after platinum and just before mercury.
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