WHY WILL FINANCIAL MARKET RESPOND BADLY TO OVER SELLING OF GOLD CONTRACTS
ML - The way the world works - analyzing how things work - En podkast av David Nishimoto
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The gold market is dominated by central banks and other official institutions The majority of physical gold is held in the form of bars, large lumps of metal If a large number of contracts for gold are sold for delivery, the price will decline This will cause difficulties for holders of gold and gold mining stocks, because the cost of holding gold will increase It will also be noticed by the official holders of gold At the same time, it will be noticed by the official holders of gold At the same time, it will be noticed by the official holders of gold The central banks of the major countries supply most of the world's official gold stocks They will be aware of the decline in the gold price and will wonder why it has happened They will know that a sale of gold contracts would be the most likely reason When the central banks of the major countries enter the market to supply gold, they will be aware that the gold price is under attack They will know that there is a plan to sell gold contracts and that the purpose of the plan is to reduce the price of gold and to prevent the price from rising The central banks of the major countries will be less likely to supply gold to the market because they will know that they are being subjected to a bear raid The central banks of the major countries will be less likely to the bear raid
