WTF Chart of the Day: Selling Gold To Finance Bad Investments

It is reported that certain financial institutions in Asia are selling their gold holdings to cover their margin cost on some speculative "investments". Hence the flush down actions in gold over the past 2 weeks.

Based on my original projection on this selloff, gold has completed majority of the move now.

Gold bugs continue to sing the tune of conspiracies like someone forced gold to go lower on purpose.

Sometimes, things can be explained much easier if it is viewed from a different angle, like, common sense:

1. those at the top of major financial institutions and governments do not really know how the intricate financial markets function

2. same for those who speculate on false information and rumours

3. majority of people tend to throw away good assets to finance the bad ones

This combination is much more deadly than the scenario where a small number of people who know what they are doing is in control.

Tomorrow is Canada Day. Here is a quote from our famous writer, Margaret Atwood in her novel Surfacing,

"Stupidity is the same as evil if you judge by the results."

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