"I have been following your comments on the above matter and came across the attached article from WSJ which I thought might be of interest."

David Fuller's view The WSJ is correct in saying that gold sales (I would include leasing) even if possible will not solve Europe's debt woes at today's prices (I pointed this out in response to Email 1 on Tuesday). However, it could provide some breathing space. If you can access the online link above, which may require subscription registration, you will also see reader's comments in response to the article.

For the record, I am not advocating that Italy or the rest of Europe sell gold. I wish to remain objective on this point. Also, It is their gold and their decision whether or not to sell or lease gold, whether to default or not, or whether to stay in or step out of the Eurozone. Good luck to them, whatever they decide.

Meanwhile, the price action (see gold charts in Email 1 above) clearly indicates that supply currently has the upper hand and that gold will have to find a new medium-term floor.