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”.
can read the rest of the article here.
some essays on Gold price management there