From: Unfiltered News
Gold and silver suffered big losses this week, but not because of a change in market fundamentals. It was because the commodities exchange sharply reduced the extent to which speculators can acquire gold or silver contracts with borrowed money instead of cash. Thousands of speculators had to sell a portion of their holdings to raise the money to protect the balance. This sudden dump caused a sharp decline in price. Investors who lost money when Wall Street crashed last week also had to sell gold and silver (if they held any) to cover their leveraged losses in stocks and bonds. [The only people hurt were speculators who play the market with borrowed money. Investors with cash did exceedingly well. Now that the sell off is complete, the price of gold and silver once again will move upward as a mirror image of the decline in the purchasing power of the dollar and other fiat currencies.] SF Gate 2011 Sep 26 (Cached)
Leave a Reply