Monday, October 19, 2009

Gold may not follow the crash next time

Voltron says: when the stock market crashed last year, gold prices went down with it because hedge funds were forced to sell any assets, including gold, to raise cash for margin calls. Do not expect this to happen next time because one of the major exchanges is now allowing gold to be used as margin collateral. And, oh by the way, the gold will be stored outside the U.S., in London.

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