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1) Reported by imarketnews.com:
Sales by overseas central banks could see a sharp fall in gold prices,
the Financial News reported Wednesday, citing Zou Pingzuo, a central bank researcher.
"Investors should be careful about investing in gold. Gold prices
could fall sharply because of intensive gold sales by the U.S. and other
overseas central banks," Zou said.
To me this a sign of desperation by the
Chinese. There has been no indication by the US to sell and all recent talk
is about central banks buying. They are trying the old scare tactic of
central bank selling to try and push the gold price down. They want to buy as
much gold as they can but don’t like the current high price.
I think they are hoping this "bubble" will deflate and they
can continue with their sneaky "get out of dollars and buy gold".
What happens when the Chinese realise the price
isn't going to drop? Will they be forced to go all out and start buying
whatever physical they can?
2) Worthwhile read for libertarians - The Mind Conspirators by Nelson Hultberg. A quote:
Philosophical fallacies and socialist falsifications of economics and
history have gained sway in the school system to poison our citizens' minds
against the American concept of freedom. Such fallacies have created a
grossly distorted image for the man in the street about the way the world
works. Freedom is now seen as inimical to human dignity. Creative
entrepreneurship is portrayed as exploitation of the poor instead of their
only hope. Gold is termed a "barbarous relic" instead of history's
proven store of value. ...
We are being conditioned to accept sloth as normalcy, servility as
dignity, weakness of will as compassion, and government conveyed privilege as
justice. The world of sanity and rationality gives way to regimental
nightmares of Orwellian "newspeak" and "political
correctness" in order for legions of middle-class sluggards to feel good
about themselves while they live out their spiritually squalid lives queuing
up to the entitlement troughs of the mega-state.
My response to the article agrees very much with the comments of MetaCynic:
Accepting Hultberg's argument that ideas are
the engine of not only entire civilizations but of every individual, begs the
question why do some ideas gain traction and not others. Why did the
ultimately unworkable collectivist ideologies of the big picture
intellectuals, Rousseau, Hegel, Comte and Marx, find acceptance in the midst
of the wondrous prosperity produced by the Enlightenment's Industrial
Revolution? Why does the siren call of unaccountable collectivism to this day
continue to outsell individual liberty with all its attendant responsibilities?
Despite its clashes with reality, do collectivist intellectuals really
have to work very hard to find widespread acceptance for their ideas? Maybe
there has always been a ready market for their disabling poison. In
politicians and bureaucrats they have, of course, an enthusiastic audience
eager to legitimize their own drive for wealth and power. In the envious
masses they have deluded voters proudly participating in the process to
redistribute the wealth of others into their own pockets. And in the captains
of industry they have "capitalists" in need of protected markets
and guaranteed profits. The great majority of humans are conformists and
clock watchers interested only in comfort and entertainment.
Bron Suchecki
Goldchat.blogspot.com
Bron Suchecki has worked in the precious metals
markets since 1994, when he joined the Perth Mint as an Administration
Officer in their Sydney retail outlet. In 1998 he moved to Perth to work in
the then fledgling Depository division. He has held a number of roles since
then in the treasury, risk and governance areas of the Mint.
All posts are Bron's personal opinion and not
endorsed by the Perth Mint in any way.
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