Hi MD. You notice there is starting to be more talk lately about gold lending and short positions from places other than Bill Murphy.
New York--Jun 3--Central bank gold lending is increasing and will this year
likely exceed the 4,300 tonnes seen at the end of 1998, said Philip
Klapwijk, managing director of Gold Fields Mineral Services Ltd. However,
Klapwijk dismissed speculation that central bank lending may be as high as
6,000-10,000 tonnes, saying that such numbers were "fanciful." Gold Fields
Mineral Services expects that central bank gold sales will be lower than
the 412 tonnes seen in 1998, even including the recently announced UK
Treasury gold sale plan. By Cristine Denver, Bridge News, Story .22496
New York--Jun 3--Given the significant amounts of gold central banks have
apparently lent into the market there may be potential for a short squeeze
situation to develop, Henry Bingham, president of Van Eck Institutional
Advisors, said. A fair amount of the gold that has been lent into the
market has been lent to producers, but there is also a significant amount
lent to the carry trade. By Cristine Denver, Bridge News, Story .22712
London--Jun 4--The Bank of England (BOE) has published the results of
consultation conducted with London Bullion Market Association (LBMA) members
regarding the gold auctions it plans to begin Jly 6.
"Following the announcement May 7 of plans to hold a series of gold auctions
this financial year, the Bank launched a process of consultation with members of
the London Bullion Market Association on the practical details of the auctions.
This consultation exercise has now been completed," the Bank said in a
statement. By Bridge News, Story .14625
London--Jun 3--The UK Treasury is likely to issue more information over the
next few days relating to the gold auctions it plans to start Jly 6,
according to sources here. A summary of the Treasury's consultation with
market makers is expected either later today or Friday, while an
information memorandum disclosing more details about precisely how the
sales will be handled is expected early next week, they said. By Bridge
News, Story .21007
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