European Central Bank president Mario Draghi cleared the way yesterday for Cyprus to sell its 13.9 tonnes of gold reserves to fund the beleaguered island's bail-out and traders took this as a sign that he had opened the door to similar moves in the future. Portugal, which is struggling to avoid a second rescue, holds 382.5 tonnes of gold, according to the World Gold Council. Goldman Sachs advised clients in a note this week to short gold, as it lowered it 12-month forecast to $1,390 from $1,550. http://www.telegraph.co.uk/finance/...-bear-market-as-price-plunges-below-1500.html Stack more silver guys!
nothing wrong with these countries selling their gold. That's what it's there for.... and there's plenty of buyers.
I've got to say I'm joining the tinfoil hat brigade on these two data: 1. As far as I'm aware, Cyprus denied a gold sale as a rumour yesterday. The 'accidental' pre-release of Fed minutes alluding to this and the potential reduction in QE dropped Gold by 1.5%. 2. Goldman advising people to Short Gold seems to be self-serving at best, designed to fleece their customers in the medium term, or part of a coordinated scragging activity, they have 'form' in 2001. So last night there was a general deterioration in the Gold position and a downward hit. The real waterfall that followed was massive; and I suspect that several physical traders will decouple by refusing to take orders, like Atkinsons in the UK. What good is cheap gold if you can't buy it?
