All over the word in central banks and mining companies the rise in the pog is stimulating office politics. India and Sir Lanka's recent announcements add fuel to the fire.

Many Central Banks are controlled by their government. But even so those in control may ask the "experts" what they think about increasing the percent of reserves in gold.

Some key people favor adding more gold, other key people don't.

Jobs and egos are at stake. Support for those who do not favor gold has become more risky and this will help lead other Central Banks to add to gold holdings.

Mining companies have been searching for partners for some time.

Suppose this was your job and thus far you have made nothing happen? Suppose you opposed certain targets that were later acquired by others? Suppose your boss and the board are getting antsy?

Mergers do not need to make good economic sense. Financial engineering sounds precise but the real motive is to make money for the firm that puts the parts together.

This speeds up the urge to merge because not needing to pass the smell test will make it easier to get deals done.

Check out article prior to India's recent gold purchase, on the subject of acquisitions and mergers. There was plenty of interest then and now office politics will make the urge to merge more intense.