The Fed is creating $85 billion per month or close to $3 billion per day, 24/7. The Cypriot Gold at is only 1/5th of what our Fed prints EVERY day! The U.S. Treasury borrows some $4 billion per day to keep our well oiled economic engine running, ALL of the Cypriot Gold is about 1/7th of what the U.S. borrows each and EVERY day. Last month, China imported from Hong Kong alone some 97 tons or roughly 7 times the amount of Cyprus’s total Gold holdings, the Cypriot Gold is a mere 4 days worth of imports. One other way to look at this is that 14 tons is about 6 tenths of 1 percent of the global production of Gold for 1 year…it is nothing. No, $650 million in today’s world is LESS THAN NOTHING!
I had not planned any commentary this weekend but with Gold “down” $65 per ounce I will put my 2 cents in. As you know, I called “bottom” about 5 weeks ago the first time we hit $1,550 then again about 2 weeks ago on the retest of those levels. They were broken decisively Friday. The “reason” for Wednesdays sell off of $25? And the reason given for today’s $65 by the CNBC know nothings? ……..Cyprus!