Yesssssssssssss - Top Financial News Sun, 26 Sep 1999, 8:40pm EDT
Subj: BULLETIN !!! - GOLD UP $x - NEWS OUT !!!
Date: 9/26/99 9:59:49 PM EST
From: LePatron@LeMetropoleCafe.com
To: dougak
Le Metropole members,
Fifteen European central banks led by the European
Central Bank Sunday pledged to not enter the market
as a seller of gold with the exception of sales that
have previously been decided...
In a joint statement issued by the central banks, they
said "gold will remain an important element of global
monetary reserves."..
The gold sales already decided will be achieved through
a concerted program of sales over the next five years,
said the banks...
Annual sales won't exceed about 400 metric tons and
total sales over the period won't exceed 2,000 tonnes..
THE SIGNATORIES TO THE AGREEMENT HAVE ALSO AGREED NOT
TO EXPAND THE GOLD LEASINGS AND THE USE OF GOLD
FUTURES AND OPTIONS OVER THIS PERIOD...
Switzerland and England are included...
European Central Bank President Wim Duisenberg also
said the central banks agreed to the 400 metric ton
annual ceiling because it was an amount that wouldn't
disturb the market and that he thought the market
could absorb such a sale?....
"The current situation is characterized by uncertainty
an that uncertainty by itself led to a lot of volatility
and a downward trend in the gold price." Duisenberg
said...
He said central banks want to see stability in the
market, but he also said they're "not trying to
prop up the gold market."..
Nonetheless, Duisenberg indicated his expectations
for a bullish reaction to the announcement: "I
think the gold market will interpret the ceiling
as being less than they feared...End
At the moment December Comex gold is trading at
$275.70 up $5.90 and has traded up to $277.
This explains what I told you in the last Midas
du Metropole about the scoop I received that some
hedge funds had swiftly left for Switzerland this
week to discuss the gold market. They MUST have
known this was coming and, as I told you, are
very concerned about finding the gold they need
for their short positions - either for buy
back or borrowing purposes.
More on all this tomorrow in Midas. Stay tuned and
be informed. A multi year bull market in gold is
ahead of us. There is a lot of money on the table
now.
All the best,
Bill Murphy
Le Patron
lemetropolecafe.com
Hot off the wire services:
Top Financial News Sun, 26 Sep 1999, 8:40pm EDT
Duisenberg Says Europe's Central Banks Won't Add
to Planned Gold Sales
ByHellmuth Tromm
European Central Banks Pledge to Limit Gold Sales
(Update1) (Adds details throughout. GSEV for a
special report on the IMF meetings.)
Washington, Sept. 26 (Bloomberg) -- European Central
Bank said they will limit the sale of gold in the
coming five years, trying to bolster gold
prices which have plunged by a third in the past
three years.
In a statement issued on behalf of the 11 euro
region central banks, plus the Bank of England, the
Swiss National Bank and the Swedish Riksbank,
European Central Bank President Wim Duisenberg said
central banks won't add to their already announced plans
for limited gold sales. The banks together
account for 50 percent of all official gold reserves,
a Bank of England official said.
Duisenberg said already decided gold sales will be
achieved through a concerted program over the next
five years, and annual sales won't exceed
about 400 tons with total sales over the period not
exceeding 2,000 tons. He stressed that they agreed
gold will remain an important element of
global monetary reserves.
Most of the gold sales will be accounted for
by U.K. and Swiss sales, with about 300 tons coming
from other banks who have decided to sell but haven't
yet announced their intentions, Duisenberg said.
``The purpose of this action is to give certainty to
the gold market,' Duisenberg said. Central
banks who hold ``a substantial part' of their reserves
in gold are also concerned about ``keeping the value
of that gold where it is.'
Fading Lustre
Gold prices have dropped by a third in the past
three years as central banks, including those of
the U.K. and Switzerland, sold reserves and on
traders' concern that other governments would
also sell. The precious metal lost its shine as
a hedge against inflation, and banks switched to other
investments, such as government bonds that
offer higher returns.
Duisenberg added that the central banks also agreed
not to expand their gold leasings and their use of
gold futures and options over the five-year
period. The agreement will be reviewed after five years.
The European central banks' announcement comes after
an agreement by the International Monetary Fund's
policy-making Interim Committee agreed to
revalue 14 million ounces of the fund's gold
reserves to help finance a $40 billion debt-relief
program for some of the world's poorest countries.
The IMF gold, however, will be sold in off-market
transactions designed to have minimal impact on
gold prices, which have been falling, and to defuse
protests from gold- producing countries, some
of whom are meant to benefit from debt forgiveness
in the Heavily Indebted Poor Countries initiative, or
HIPC. HIPC is jointly run by the IMF and World Bank.
IMF, US Gold
IMF gold accounts for 10 percent of official gold
reserves while the U.S., which opposes selling its own
holdings, holds another 30 percent. ``We have indications
that the U.S. is not changing its attitude,' Duisenberg said,
who added that the U.S. was ``involved' in the
European discussions.
The European central bank president also said
it was ``pure coincidence'that the European central banks' announcement came shortly after the IMF
initiative was agreed. ``The only reason is that we
were all together' for the IMF and World Bank's
annual meetings.End
All the best,
Bill Murphy
Le Patron
lemetropolecafe.com |
