by Darryl Robert Schoon
In How to Survive the Crisis and Prosper in the Process (3rd ed., 2012) I describe the five stages of gold. When I began writing the book in 2006, gold was in Stage 2. In 2007, gold entered Stage 3 where speculators and investment funds become a factor the increasingly volatile price of gold.
On October 19th, Commerzbank attributed the day’s 1.3 % fall in the price of gold to speculative financial investors: “The Dollar Gold Price fell to $1732 per ounce Friday …We hold selling by speculative financial investors responsible for the price slide…In recent weeks they had strongly built up their positions and may now be seeing themselves forced to take profits given the faltering upswing.”