Tuesday, July 9, 2013

Why the Selling Frenzy in Gold?

"Even though Western central banks killed the gold price during the last couple of months with their dis-hoarding we do not yet know precisely why they killed the gold price. What did the central planners want to accomplish by dis-hoarding so much metal in such a short period of time?

Of course we know the obvious reasons, like trying to keep people in national currencies, and the various risks these currencies involve, particularly the risk of keeping money on deposit in banks. Reasons such as these have been in play for more than a decade as the central planners have attempted to hold together a financial system that is no longer sustainable because of insolvent banks, unmanageable levels of debt and governments that cannot control their spending. These reasons have been well documented by the various analysts whose work has been published at places such as GATA and King World News.

But we have never before seen such a massive amount of dis-hoarding from central banks in such a short period of time. Given that the central bankers all recognize the importance of gold as a key monetary asset on their balance sheet and one they only sell gold reluctantly, why did they do it? Why the selling frenzy? And why right now?"

- James Turk via King World News: