Gold dropped to below $778 an ounce in Tuesdays’ early New York trade before recovering some lost ground at $786 an ounce by 11.30 am.

Traders are saying the stronger dollar and OPEC decision not to lower oil output are the reason. We just wonder if liquidity problems are also in part responsible.

The US has enjoyed the world’s highest leveraged stock markets for years and is arguably the reason for soaring stock prices coupled with paltry yields that would not have been countenanced by any savvy investor in years gone by.

The credit crunch coupled with ever increasing costs in day to day living must sooner or later lead to belt tightening amongst stock market players except the filthy rich, and most filthy rich only got where they are by being ahead of the game.

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