More B.S. in the Press About Gold...

Marketwatch has an article out that attributes the big move in gold today to the fact that Greece will not be selling any gold in order to raise funds as part of its bailout. Here's the link:  Garbage reporting.  One analyst in the article referenced the Washington Agreement which limits the amount of gold the ECB can sell to 400 tonnes.  We're four months into the current WA year and the ECB has barely sold any gold, leaving plenty of room for Greece to sell its gold if it so chooses.

Here's what's really going on with gold.  To begin with, Greece reports holding 112 tonnes.  If Greece wanted to sell all of it, make no mistake about it, China or India or Russia would jump at the chance to pay the current spot price for all of it.  That would leave plenty of room for other ECB member banks to sell gold this year if they so choose.  That would raise roughly $4.2 billion for Greece.  Why wouldn't they sell?

Gold shot up today for several reasons, not the least of which is the fact that a committed bailout of Greece will involve using the euro printing press to monetize part of the situation.  The printing of fiat currency is the nemesis of gold and nothing makes gold move up more quickly than the smell of the fiat printing presses running overtime.  Second, Viet Nam devalued its currency yesterday, and based on the premium of $54 over the spot price of gold being paid in Viet Nam, it would appear that the population there is scrambling to buy physical gold.  Viet Nam is quietly one of the largest buyers of gold in the world.  And finally, the bailout of Greece is the first in a long chain of sovereign bailouts, including big State bailouts in the U.S., which will require massive fiat currency monetization.  Gold smells that stench and has screamed higher accordingly.

Always remember,  there's the Orwellian Ministry of Truth truth, and there's The Golden Truth.