banks shorting gold - not forced selling, page-35

timber, you say:

"If you want to understand what central banks (and governments) think is important, follow the money. Most of it has gone into the banks to ensure the integrity of the payments system."


that's the point. they've had to put most of the money back into their "system" to bolster it. they can't chase any other worthwhile assets when at the moment they are trying to prevent the ship from sinking, throwing good money after bad to ensure the "integrity", when in actual fact all they are ensuring is a slower and more painful demise.

i agree what you said that:

"The idea of central banks holding gold to bulster confidence in paper money died forty years ago."

it did die. i don't think people are viewing gold as something to "bolster" confidence in paper money, rather are viewing gold as it's own asset class that carries it's own risk profile yet not the same level of counter-party risk as fiat currency