Yeah, apparently, these charges against Goldman Sachs are so serious that investors are unloading ANYTHING that has “gold” in the name. Gold futures took a nosedive on Friday, continue down again today:
Announced on Friday, the Securities and Exchange Commission action against Goldman Sachs hit major benchmarks around the globe, with Asian stocks falling early Monday in reacting to the news.
Gold was hit hard on Friday amid news that hedge fund Paulson & Co. was involved, although not charged, in the SEC’s complaint against Goldman. See related story.
Paulson “spun off another fund that has been very bullish on gold and is cooperating with the SEC in the Goldman charges,” said analysts at Action Economics.
Gold futures fell 2.5% last week, with much of the drop coming on Friday.
We’ve heard rumblings that Gold is considering changing its name to “Morganium,” though neither the World Gold Council nor anyone at $GS or $JPM was willing to comment.