So we see all this talk about using the gold reserves of several European countries to fund the numerous bailouts. Right now, everyone is denying such plans. We have seen this before. First they deny, then they argue, finally they act. I expect the same thing to happen with regards to gold sales. It´s all about kicking the can down the road for a few more months. Gold is the best asset governments have. They could sell it eventually.
Now: Why should this worry me or any other gold investor for that matter?
My answer: If selling gold reserves gets fancy, we could have quite massive downside moves in gold. I mean, Euro countries hold more than 10000 tonnes of gold. That´s a lot. Even if creditor nations (and private investors) buy it all, prices could fall significantly for a while. So maybe one needs some patience to see the real endgame for fiat vs. gold.