Another bubble has burst. Who would have thought?
Good thing I don't own any jewelry outside of a watch.
The money in the market is the feds money and the bubble will pop soon enough. Cheap money and high interest rates to follow. Maybe it is sequestration?
I read that there were fears that it was feared that Cyprus was going to flood the market with their gold to get out of their problems.
First they purloin the savings and bank deposits in Laiki and the Bank of Cyprus, including the working funds of the University of Cyprus, and thousands of small firms hanging on by their fingertips.
Then they seize three quarters of the country’s gold reserves, making it ever harder for Cyprus to extricate itself from EMU at a later date.
The people of Cyprus first learned about this from a Reuters leak of the working documents for the Eurogroup meeting on Friday.
It is tucked away in clause 29. "Sale of excess gold reserves: The Cypriot authorities have committed to sell the excess amount of gold reserves owned by the Republic. This is estimated to generate one-off revenues to the state of €400m via an extraordinary payout of central bank profits."
This seemed to catch the central bank by surprise. Officials said they knew nothing about it. So who in fact made this decision?
^ Very interesting.