$800 again?

Good grief.  Gold got whacked down to $800 again this morning.

As if that has any bearing on reality.  Just try to find an American Gold Eagle or Maple Leaf (or Krugerrand or Philharmonic) for that price.

So what's to blame?  "Gold tumbled on hedge fund liquidation talk," according to the analysts at Action Economics, "with speculation that some names are being forced to liquidate long standing positions to cover losses elsewhere."

Ah, the Great Deleveraging at work again.

Or is it?  Bloomberg cites a report from Barclays that says central banks are unloading more of their gold — 7.6 tons from European Central Bank vaults last week alone.

Ah, the Great Manipulation.

Deleveraging or manipulation?   Your humble blogger maintains strict neutrality on the question.  But he suspects you have no shortage of opinions out there.  Fire away.  (And consider these ways to take advantage of the low "paper price" of gold in the meantime.)

The Daily Reckoning