Wednesday, Feb 17, 2010
I bet they didn't expect that!
Reuters: Sterling rises versus euro after unanimous BoE minutes
Just imagine how 'Great' Britain could be with a little bit of sensible financial governance.
Posted by markj69 str05 @ 08:55 PM (831 views) Add Comment
9 Comments
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1. str 2007 said...
Possibly related but a question rather than comment on above.
Does anyone know why the price of Gold in all currencies suddenly fell tonight at 9.00pm ?
I had a scout around and have no idea.
2. markj69 str05 said...
Not sure if this helps:
http://www.axcessnews.com/index.php/articles/show/id/19633
http://online.wsj.com/article/BT-CO-20100217-716410.html?mod=WSJ_latestheadlines
3. str 2007 said...
cheers mark
from the second link
{WASHINGTON (Dow Jones)--The International Monetary Fund said Wednesday it will soon begin selling to the market the remaining 191.3 metric tons of gold it has slated for release, though the sales will be conducted in phases to avoid disrupting markets.
The sale of gold, currently worth nearly $6.9 billion, will begin "shortly," the fund said in a brief statement.
"In accordance with the priority of avoiding disruption of the gold market, ...}
Like you can sell 191 tons of Gold without disrupting the market. LOL
& they tell everyone they're going to do it first to disrupt the market further. Bizarre. If I was going to shift that much Gold the last thing I'd do is tell the market.
I could be proved wrong but with that news recent talk on this blog of prices going through the roof imminently look a little shaky. I'll sticjk with my view of a clear double top being formed in the Sterling price on the year chart.
4. drewster said...
str2007,
Although at first it may seem odd for them to announce the sales beforehand, in practice these large institutions are bound by their legal mandates. Just think how much worse it would be if the IMF announced that it had secretly sold 191 tonnes of gold, without telling anyone beforehand - there would be accusations of a cover-up, calls for the head of the IMF to resign, etc.
By my maths that works out to ~$6.7bn worth? Is that a large figure relative to the total volume of gold traded?
5. fallingbuzzard said...
Bloomberg reported but called the view on thiis wrong. Traders are confused by the minutes which say qe is stopped for now. This is not consistent with the press conference in which we were told that QE could resume. I think the latter is the likely course.
As for the gold, you could sell that easy. Plenty of suckers out there.
6. I'm Alan Partridge said...
$6.7 bn in physical, i can see all that lot heading east. China with $2 trn sat around doing nothing, a drop in the ocean. Gold is having a lovely consolidation period. If you dont hold at least 5% of your wealth in pysical PM's then i belive there will be cause for regret in the not so distant future.
7. str 2007 said...
Drewster
I guess I should know how much Gold is trader so could put it into percpective.
Bearing in mind it's discussed in oz and theey're selling it in hundreds of tonnes, it seems quite a lot.
Admittedly if your calcs are right then a few billion doesn't sound that significant. In fact makes you wonder how they can even be bothered LOL.
8. str 2007 said...
Falling Buzzard
Yes I noted from the exchange of letters between Merv and Alistair that QE could well start up again. All they need is a dip in the Haliwide index and the press will role.
9. peter rocker said...
str 2007: Back to your original question, there is commentary on daily price movements in gold and silver here:
http://www.caseyresearch.com/displayGsd.php