Quote:
Originally Posted by ninavain
According to former Assistant Treasury Secretary Paul Craig Roberts, last Friday?s price drop was the result of some 500 tons of gold being dumped onto paper markets, an amount equal to about $25 Billion dollars worth of the metal. Likewise, silver saw a similar dump and price drop. Moreover, the very same thing is taking place this morning, suggesting that some very large and influential market makers are involved.
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Gold on paper is leveraged by factor of 10. If a hedge fund sells 1 Billion worth of Gold, it will be 10 Billion on paper. All needed are two or three large hedge funds to move the market by 10%. Most of them move out of precious metal as it does not pay interest, but Central Banks will pay more interest soon. Very simple market mechanics known as asset rotation.