The gold bulls are fighting a losing battle, as the price of gold once again appears poised to make a serious move to the downside.
Evidence is in short supply.
Central bank selling has been blamed in part for the decline and there is no doubt that the consensus among these fine upstanding members of the banking community is that they need to get away from the concept of gold as money. Certainly it seems, one does not need to hold gold as part of ones reserves. The Australian Reserve Bank appeared to lead the way with its announcement late June of 1997, that it had sold two thirds of its gold. This announcement began the pattern that has continued to repeat to this day. Next we had the Bank of England announcing that it would reduce its holdings over time, auctioning 25 ton's every 8 weeks.