Robert A Green, writing in Forbes’s Blog, suggests the FED should sell some of its Gold reserves to prevent a “run on the bank”.
“How about the U.S. Federal Reserve sells some of its huge gold reserves? The U.S. sold off some oil from the Strategic Petroleum Reserve, in order to slow down speculation and price hikes in oil and gas. That intervention may have worked. I think the Fed should consider selling some of its gold to dissuade a ‘run on the bank’ mentality that is spreading too fast this week. Investors are selling financial assets – which had a good run since the last meltdown buttressed by Fed QE1 and 2 – and seeking refuge in gold and silver. Storing investment capital in precious metals is bad for our economy, as those funds are not put to work in companies and working capital”.
You can read the rest of the article here.
And some essays on Gold price management there
