Market Anticipations of Government Policies and the Price of Gold

  title={Market Anticipations of Government Policies and the Price of Gold},
  author={Stephen W. Salant and Dale W. Henderson},
  journal={Journal of Political Economy},
  pages={627 - 648}
This paper is an analysis of the effects of anticipations of government sales policies on the real price of gold. Although the risk of a future government gold auction depresses the price, it also causes the price to rise in percentage terms faster than the real rate of interest and at an increasing rate. Even risk-neutral investors require this rate of return as inducement to hold gold in the face of the asymmetric risk of a price collapse. Announcements making a government auction more… 
The Vulnerability of Price Stabilization Schemes to Speculative Attack
  • S. Salant
  • Economics
    Journal of Political Economy
  • 1983
This paper examines the effects of government attempts to stabilize the prices of commodities by use of buffer stocks. Agricultural goods subject to supply uncertainty as well as depletable resources
The Application of Gold Price, Interest Rates and Inflation Expectations in Capital Markets
The aim of this research is to determine a forecasting model of the price of gold in relation to the rate of interest from 1971–2013 that would benefit wealth managers in their forward interpretation
Modeling Gold Price Movements and Forecasts
Factors which have contributed to gold price fluctuation include the interaction between gold demand and supply, government intervention, uncertainty of the world political environment and global
A Fiscal Theory of Currency Crises
An exchange rate crisis is caused when the fiscal authority lets the present value of primary surpluses, inclusive of seigniorage, deviate from the value of government debt at the pegged exchange
Gold Price and Exchange Rate Volatility: Effects of Economic Sanctions
The gold market has recently attracted much attention and gold prices have fluctuated over the past few years. Therefore, the aim of this study is investigate and analyze the trend of gold prices
Sovereign Debt, Real Interest Rate and Gold Pricing
In this paper, we derive a structural relationship between the gold price and the U.S. TIPS (Treasury Inflation-Protected Securities) yields under the fact that both the gold and the U.S. dollar are
Is Gold Overpriced?
The price of gold has risen dramatically since 2001, and there have been intense debates regarding the current price of this asset and its long-term outlook. Here we study a long history of the price
Nominal Debt and the Dynamics of Currency Crises
This Paper proposes a new framework for interpreting a currency crisis associated with a fiscal imbalance, which we find appropriate for the analysis of contemporary economies with outstanding public
A Viable Gold Standard Requires Flexible Monetary and Fiscal Policy
The paper studies an idealized gold standard in a two-country setting. Without flexible national domestic credit expansion (dce) policies which offset the effect of money demand shocks on


Exhaustible Resources and Industrial Structure: A Nash-Cournot Approach to the World Oil Market
  • S. Salant
  • Economics
    Journal of Political Economy
  • 1976
The theory of exhaustible resources is modified to take account of the industrial organization of the world oil market. The cartel is viewed as a unified enterprise which dominates other extractors
The Economics of Resources or the Resources of Economics
It is easy to choose a subject for a distinguished lecture like this, before a large and critical audience with a wide range of interests. You need a topic that is absolutely contemporary, but
The Optimal Consumption of Depletable Natural Resources
I. Introduction, 371. — II. The simple model, 372. — III. Market equilibrium in the simple model, 375. — IV. The extended model — optimal and equilibrium allocation with nonzero extraction costs,
Mimeographed. Washington: International Finance Division, Board of Governors of the Federal Reserve System
  • 1974
Annual Bullion Review
  • 1972