Are you sure you should be doing that?

Monday, November 26, 2007

The top card's getting a mite dusty

Dimitri Speck (in Financial Sense) looks at the behaviour of gold when the stockmarket falls, and tends to the conclusion to which we've referred before: the gold price is rigged in order to allay fears when equities weaken. In short, it's a crooked card game.

That in itself is grounds for worry (nothing to hide, nothing to fear); and the desired result must be achieved by dumping bullion, which can't continue indefinitely. On this thesis, the crisis signal will be when gold stops dancing with the Dow.

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