A Five Year Plan, Why Not?

A five year plan, why not? Socialisation in one nation - the US

David Hirst

I have been loath to say much about Paulson’s great leap forward – we might as well give it an appropriate Soviet-style title but I suppose it could have been worse. For instance they could have confiscated gold, FDR finest moment, as gold is a principal target amidst these machinations but they have, till now, refrained.

Nevertheless, as I have pointed out three times of late they have given gold a very heavy cross to bear and gold has suffered mightily. As I wrote last week gold will have to claw its way back to $1,000 and it is not going to be easy as yesterday’s carnage showed. And with friends like Barrick Gold who needs enemies.

Barrick is the largest gold producer in the world yet the company's top honcho Jo Kalsky warned yesterday the European Central Banks might sell the extra amount allotted to them and pump more gold onto the market. And well they might but what had that got to do with Barrick, is he reminding them to do just that? I don’t think they need to be told. And what’s at stake here? 25 tons. It sounds like a lot if you don’t have it but Russia could buy that amount without blinking.

Kalsky then damned gold with faint praise by saying he though it would go up but it could go down. Gold’s supporters are hardly heartened by the boss of the largest gold company sounding pessimistic about their, if not his, precious metal. Are the rumours that Barrick has not de hedged the bulk of its gold true? Why is the company always talking the commodity down? What is going on here?