Auguries — Sir James’ Revenge

December 1, 2011

By Kevin Michael Grace

Gold was up (at press time) $52.50 (+3.1%) for the week to $1,748.30, and silver was up
.87 (+2.7%) to $32.80. These rises were attributed to the collective decision of the Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve and Swiss National Bank to lower the pricing on the existing temporary US dollar liquidity swap arrangements by 50 basis points.

Bloomberg translates the above as, “European banks have been parched for liquidity and need access to dollars. The ECB can’t supply them dollars unless it borrows them from the Fed. Essentially today’s action makes it easier for the ECB and thus European banks to borrow dollars.”

Read the rest of this article.