"There is only a relatively small group of investors who very seriously believe that there is a high level of risk that the (financial) system could break down. You only need a relatively small group to believe this to move the price of gold. In other words, the metal's price behavior reflects the trivial obsessions of a discredited fraction of investment opinion." -Alan Greenspan
And just what is happening out there? Rumours are flying around that Comex might default on Gold contracts and settle in cash instead of physical delievery. Further weakness being signalled around the world financial markets and rumours of a bank holiday to give the markets some breathing space. Bernanke signalling rate cuts in an effort to calm down US markets and yet they tumble. The UK pumping 50 billion pounds into its fiscal system to shore it up and Hong Kong and Australia slashing rates to increase liquidity.
'Extaordinary' and 'Historic' are the words being used by Gordon Brown and Ben Bernanke in describing the current state of the financial system.