Germany To Sell Gold. Right!

Every time Gold action gets blood boiling, some government official trots out “central bank to sell Gold or the IMF to sell Gold.” It’s all designed to cap the price so you don’t know inflation is picking up. The Gold price rising is thet canary in the mine. If the bird stops chirping or if Gold prices rise, you know you’re in trouble.

Here’s the latest twitch from government officials and immediately shot down:

Der Spiegel magazine reported in a preview of its latest edition that Finance Ministry State Secretary Werner Gatzer had proposed selling part of the central bank’s gold reserves, currently worth around 65 billion euros (51.5 billion pounds).

According to the plan, the proceeds could then be either invested to earn interest or debt could be paid off freeing up cash that would have been used to for interest payments, the magazine said, citing unidentified participants in a March 13 meeting of budget experts.

So on March 13 Der Spiegel magazine writes that Finance Ministry State Secretary Werner Gatzer proposed in a meeting that German central bank sell some of its Gold. If you look at this chart of April Gold it sure seems orchestrated. Following the meeting on March 13, volume picked up and then Gold took a terrific beating falling from $1017 to $924 in less than a week. Now we get the denial and the rise can resume.

The result: the canary warning is subdued, confidence is hurt, margin accounts suffer and the insiders rush in and scoop up cheap Gold. Now, we are told the FED needs more power! More power to help the insiders and to screw the public.

2 Responses to “Germany To Sell Gold. Right!”

  1. “Now, we are told the FED needs more power! More power to help the insiders and to screw the public.”

    As soon as the announcement was made to give the Fed more power little red flags should have been waved in the air, but, no this is all for the good of the economy was all that was printed.

  2. The sad thing is the Democrats will say whatever’s proposed doesn’t go far enough. We are heading for totalatarianism!

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