Central Bank Put Reduces Gold Volatility...

http://blog.atimes.net/?p=1498

 

This guy claims gold is not volatile compared to the S&P 500: "The dog that isn’t barking in capital markets is the volatility of the gold price. Despite gold’s move up to a new record, gold’s historical volatility is around 18%, compared to over 30% for the S&P 500."

Maybe on a longer term basis, but not on a day-by-day basis (witness today's [monday's] 2% takedown).

Here's another bit: "So the central banks appear to be accumulating gold, slowly and steady, buying on declines, and nudging the price up as gradually as they can in order to reduce their average cost. That might be why we observe so little volatility in the gold price. The prospective buyers, namely the central banks, are so much larger than the gold market that they avoid actions which might cause price spikes."

 

This guy's big mistake is that he lumps all the central banks into one category. Actually there are two major camps:

• Gold buyers (Russia, China, Saudis, Iran, India...) - who suppress long term drops in the price of gold.
• Gold rivals (USA, Bullion Banks, UK, anyone else?) - who actively suppress price jumps and cause very short term price downdrafts. 

Once again, the result of failure to accept the GATA perspective leaves a gold analyst seriously out of touch with what's really going on,

but still...its nice to see that through the mainstream analyst's eyes the Gold Buyers are now representative of all central banks. Seems like a data point indicating that the Cartel now has big new opponents and the Cartel is losing their grip on the price of gold.

 

MontyHigh, www.worldofwallstreet.us