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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (35295)	6/13/1999 4:07:00 PM
From: baystock	Respond to of 116753

GOLD : THE MONETARY COMMODITY By Harry Bingham (October 1997) mbendi.co.za

To: baystock who wrote (35295)	6/13/1999 5:46:00 PM
From: goldsnow	Read Replies (3) \| Respond to of 116753

Get ready to buy by 11 amm :) German support for IMF gold sales may knock prices By Marius Bosch LONDON, June 13 (Reuters) - Bullion prices may weaken further in the wake of Germany's decision to back the sale of up to 10 million ounces of IMF gold to finance debt relief for the world's poorest countries, dealers and analysts said on Sunday. ''I can see them give the gold price another kick. I expect that 90 percent of this news is already in the gold price but they may just take it as another excuse to take it further down,'' said Michael Wagner, chief trader at Frankfurt-based brokers Brandeis, Hauck & Partner. German Finance Minister Hans Eichel said on Saturday that Bonn would back the sale of up to 10 million ounces of gold, amounting to around a tenth of its total holdings and worth about $2.6 billion at current prices. Most major industrial countries have for some time backed the sale of IMF gold but Germany opposed such a move until recently. Analysts said the German backing for IMF gold sales almost certainly meant further weakness in the gold price. Spot bullion prices have fallen more than $30 since May 7 when the U.K. Treasury announced plans to sell 415 tonnes of its 715 tonnes of gold reserves. ''I think maybe this is just another shift from the Germans, moving towards what seems to be the consensus view that the IMF should sell some gold,'' said Phillip Klapwijk, managing director of industry consultants Gold Fields Minerals Services. ''At the moment sentiment is very negative and I would imagine most news would be interpreted bearishly,'' Klapwijk said. But he said with the huge short positions in the gold market at present, a swing in the gold price could not be ruled out although this was unlikely before the first British gold auction, on July 6 when the Bank of England will put 25 tonnes up for sale. Wagner said dealers had started to think that sole hope for gold would be if producers began to cut back on production. ''The only thing that could save the gold price is closure in mine production and if you see another $10 fall that would start,'' he said. Bundesbank president Hans Tietmeyer said on Sunday that the question of selling IMFgold should be studied more carefully and professionally. Tietmeyer said in an interview on German radio that the German central bank, which has long opposed such a move, was not dogmatically against the idea, but would have to be convinced of the economic sense of such a move to give its approval. Tietmeyer said, according to a transcript of the interview: ''For the Bundesbank this is not a question of belief but rather a question of the economic response.'' Tietmeyer repeated that the Bundesbank's preferred way to reduce debt would be through bilateral agreements. But, he added, ''If that is not enough, and it appears that it may not be enough, then one must certainly look into the question of whether the gold reserves can be used in part, and by that I mean in a very small part.'' biz.yahoo.com