Interesting,
The Washington Post was commenting on the Treasury
international settlement report.
now the post pointed out that the
- gold--volume in millions of troy ounces 261.499
Valued at $42/Troy Ounce
Now Gold is sitting at 1100/troy ounce. So you sell it
Now I'm sure some smart Folks will say "Hey, But, If you sell,
you depress the price of Gold".
True, But let's start thinking like Clever Bankers.
A Clever Banker would go and buy several hundred billion dollars of out of the money puts on Gold. Perhaps say $5 Billion worth, at say $1000/Troy Ounce.
So you Buy Out of the money puts at say 1035/oz and you can buy those for
$1050 for $2.90/oz. (That's 700 Million of price protection)
http://www.cmegroup.com/...
so you pay down $700M in options, and say Treasury sells it's
stash for $200 Billion.
Now That's a pretty good chunk of change.
But then start thinking like you are Wall Street Bankers,
The Price has crashed say some $200/oz, so you back the gold
at the lower price,
Or You start thinking like Goldmanites, and you buy way more
puts and you Naked short gold, right before the sale.
Or even Better,
You behave Like Goldman, and you buy all the Puts, Announce you are
engaging in a massive sale of Gold,as the price crashes you force the
Puts which really starts the price crashing.
The average daily market size on the london Gold Counter is $13 Billion.
So, clearly a major seller coming in crushes that market.
Now the benefit is all these whackos right wingers are sitting on
Gold. If you can crash the price, with a naked short attack,
you can ruin the holdings of all these Gold Bugs.
http://groups.google.com/...
http://www.ronpaul.com/...
Given the massive run up in Gold Prices, it's ripe for a Short attack
anyways.
Why not If only we had real Liberals at Treasury.
We could really screw the ugliest part of america, the invetment bankers
and the gold bugs.