Auguries — What’s Behind Door No. 3?

October 27, 2011

By Kevin Michael Grace

An excellent week for precious metals, with (at press time) gold up $133.90 (+8.3%) to $1,746.80 and silver up $4.67 (+15.3%) to $35.23. These increases were ascribed variously to “grim US economic data and deepening concerns over the European sovereign-debt crisis” (AKA “Eurozone angst“), the onset of Diwali, the Indian festival of lights (“an auspicious time for precious metals purchase”) and the possible advent of the dreaded QE3.

The folks at the Gold Anti-Trust Action Committee can be forgiven for gloating a little. Wasn’t it just this month we were assured that gold’s days as a “safe haven” were over? For years GATA has said the gold market is like a crooked version of Let’s Make A Deal, wherein unknown amounts of the metal are shifted around and hidden behind Door No. 1, Door No. 2 or Door No. 3 to bamboozle investors and prop up the world’s “reserve currency.”

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