In the late 1990s many central banks began selling large chunks of their nations’ gold reserves— reserves that had often been accumulating for hundreds of years. They used the proceeds of these sales to purchase what were then termed “better paying assets”—usually U.S. government paper paying two percent per annum or less. This poem examines this policy and its consequences.....
How Not To Play
The Gold Market
The world’s central bankers (a few years back)
With a curious notion were smitten
To trade their country’s gold reserves
For better assets seemed fittin’
The price of gold had tanked ‘bout then
Two sixty-five an ounce
But central bankers all felt sure
T’would ne’er again rebounce.
Today (surprise!), the price of gold
Is upwardly a’soaring
Six hundred bucks an ounce it stands
This bounce brooks no ignoring
Though central bankers’ view of gold
Was dumb, folks are surmising
It's mighty queer you still don’t hear
The perps apologizing.
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