"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.
Therefore at any price, at any cost, the central banks had to quell the gold price, manage it."
Sir Eddie George, Bank of England, September 1999
“In times of change, learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.”
Here is the change, in tonnes, in the inventory of major exchanges and ETFs for gold and silver since the beginning of the year. Nick Laird of Sharelynx.com was kind enough to share the data which he has collected with me. He does a remarkable job in maintaining an enormous amount of data at his site.
As you may recall, both silver and gold have seen price declines since the beginning of the year. As a reminder, silver is down 28.7% and gold is down 21.5%. I show this in the last chart. So they have both seen comparably stiff price declines this year.
Since the beginning of the year, the major exchanges and ETFs for silver have added about 1,494 tonnes of bullion. ...