Price Swings and the Digital Age.
Last month, we wrote and committed resources to the proposed mining charter in South Africa. In the time between E&MJ being printed, mailed and readers receiving the magazine, sanity prevailed. South Africa reversed course (See Leading Developments, p. 5) and the news story had run its cycle. A former E&MJ editor would occasionally cite the expression that “today’s news is tomorrow’s birdcage liner,” and I immediately thought of him when the news broke. We are happy for the South African miners and we apologize for the inconvenience.
People receive input instantaneously and can react upon it just as quick. It has reshaped how news is delivered and it’s having a similar impact on traders as well as algo trades. Precious metals traders have been discussing the recent downward “spikes” in late June and the first half of July. For example, on June 26, Ross Norman, CEO, Sharps Pixley, reported that at “9:00 [London, GMT+1] gold was rocked by a 56-[metric-ton] (1.8 million ounce) gold sale — but it remains a mystery who … and why.”
