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Strategies & Market Trends : Waiting for the big Kahuna

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To: Alex who wrote (7374)	10/26/1997 1:55:00 AM
From: rdww	Read Replies (1) of 94695

the world gold org has a web site at www.gold.org. In the aug 97 report was a copy of the speech given in Austrialia after the Aussies said that they had sold 167t.In it they note that the IMF in their 96 annual said that the IMF (2nd largest holder behind US)has a responsibility to gold holders, producers + the functions of the gold market - to not upset the market. Also noted is that South Africia had to use Gold during the late 80's as no one would loan them money. Also noted was India loaning it's gold in the early 90's to pledge colateral when they had no other menas of securing loans. Both of these countries reclaimed their Au when crisis were gone. Bank of England has said that ROR on Au inrecent yrs - as related to the lending market - is comparable to bonds demnominated in Marks and superior to any Yen denominated instruments. So in summary - we have here recent cases of countries that have gold as a backup and used it. The countries that say there is no use for gold - have not had recent crisis which cause them to use the gold.But they have debts and they are probably all valuing Au at less than market and this could be a way of paying down some debt that is foreign held. Swiss sales is a red herring. They cant sell any till they get an okay from the public and then they are talking 2 yrs from now if they can - and if there might stii be a market for it. If they believe that there is no market now - then how long till other EU? contries beat them to the selling, so that there is no market for the Swiss Au. They let the cat of the bag to early on possible sales and this means that the whole thing is a pr moment. NOt to mention that devaluing gold may also save them some of the money that they have agreed to reimburse for WWII activities. footnotes (that may confuse the earlier note) Barons this weekend has a couple of articles suggesting deflation is on the horizon. Friedberg Commodities has for a few issues now called for deflation. Friedberg was short Au - covered @328 - before the recent rally and then went short again and expecting a possible low of $280. This is from the guys who had a 2 yr gold bond that went up significantly in value if + when gold rose as they used to predict.

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