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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (6425)	6/15/1999 3:32:00 PM
From: Tom Byron	Read Replies (1) \| Respond to of 81960

for example: decisionpoint.com or even better still: decisionpoint.com

To: Broken_Clock who wrote (6425)	6/15/1999 8:02:00 PM
From: ForYourEyesOnly	Read Replies (1) \| Respond to of 81960

METAL COMMENT FOR JUNE 16, 1999 website: lfgllc.com CLOSES METAL DEPOSIT RATES (based on 30 day maturities) August Gold $261.00 July Silver $ 5.055 GOLD 1.00% July Platinum $356.20 SILVER 1.25% Sept Palladium $337.65 PLATINUM 5.50%DAILY COMMENTARY GENERAL COMMENTS: The precious metals were mostly lower in very quiet conditions. Gold stayed within expected ranges of $259-$261 and closed just $1 lower. Silver, after failing late last week at $5.15, tested its support near $5. Platinum got whacked good this morning on what was reported to be cash selling overseas in the Far East. Palladium turned in a bit higher after speculators on Tocom decided that prices had fallen far enough to make the metal look attractive. Germany, who was formerly against any IMF gold sales, has now agreed to IMF sales of gold but cautioned that they must be conducted so that the market is not greatly affected. The media is REPEATEDLY spinning this story of IMF sales as if the proceeds of this sale will be spent to alleviate debt of the Highly Indebted Poor Countries. THIS IS ABSOLUTELY UNTRUE. According to current plans, the funds received from this sale of gold will be held in trust and the interest, and the interest only, received will go towards this initiative. These funds will amount to only about $160 million dollars a year. This is like spitting in the ocean of well over $50 Billion dollars of debt owed. Again, one wonders if there is another hidden agenda. With the Financial Times gold conference now occurring in London, there was a great deal of official announcements: As follows: To quote Mr. Kevin Crisp of J.P. Morgan, "Gold is on a path of evolution away from being a closely held store-of-value asset. It is not inconceivable to think that in the next five year, gold may from time to time trade in much wider ranges than those seen of late and relatively short periods of time, repeating patterns seen in the 1970's and 1980's. I believe that the next five years may see fluctuations in the dollar price of gold of $100 or $150 over periods of months." Mr. Neil Hewitt, a gold consultant to Goldman Sachs, "It seems that we have to accept that gold is perceived to be no longer unique. We cannot just sit back and hope that it will sell itself as it used to. Gold must be advertised, marketed, promoted , sold like any other prestigious high quality merchandise." Mr. Kelvin Williams of Anglogold, "Gold producers have to stop taking demand for granted, 70 percent of gold producers spend not only cent on their product." Mr. Ouyang Wei, editor of China Money, "When some Central Banks in Western countries and international financial institutions begin selling or intend to sell gold on the international market, China's Central Bank, lured by the current low gold prices, may consider buying some from the market to increase our share of gold in its international reserves." The World Gold Council mentioned that it was "far from a done deal" that the IMF will sell gold even though all countries involved have approved the sale in principal. Please remember that the U.S. Congress must also approve such a sale and this is very much in question. I think the WGC is blowing its horn to perhaps help the gold price. I can't imagine that this sale will not occur. Lease rates in platinum are now about 5.5% per annum. At this time, we would strongly recommend the physical purchase of platinum and its subsequent lease into the marketplace using our reverse repurchase program. Not only do you benefit from a potential rise in price of platinum (and naturally suffer from a decline), but you can receive an income stream higher than current T-Bill rates.GOLD OPEN POSITIONS: LONG 2 UNITS AUGUST 275 PUTS BOUGHT AT $3.30 CLOSE $14.20 LONG 1 UNIT AUGUST 270 PUTS BOUGHT AT $4.50 CLOSE $10.40 YESTERDAY'S RECOMMENDATION: none. We took profits yesterday of approximately $4200.00 and our open positions have a mark to market of about $2800.00. The market looks like it wants to go higher here. I look for a move to $264 or so. RECOMMENDATIONS: none.SILVER OPEN POSITIONS:LONG 2 UNITS OF JULY SILVER BOUGHT AT $5.08 CLOSE $5.05 LONG 1 UNIT OF JULY SILVER BOUGHT AT $5.095 CLOSE $5.05 YESTERDAY'S RECOMMENDATION: none. Nothing really to say but the next 10 cents up will be tough sledding. The weekly charts are looking really good but the daily charts look overbought. RECOMMENDATION: none.PLATINUMOPEN POSITIONS: LONG 2 UNITS OF JULY PLATINUM BOUGHT AT $364. CLOSE $362.70 LONG 2 UNITS OF JULY PLATINUM BOUGHT AT 368.20 CLOSE $362.70 YESTERDAY'S RECOMMENDATION: Unfortunately, we were stopped out of our positions in this market at the low of the day for a loss of about $1850.00. I do not understand what happened to this market, but with the way looks I am glad we are out. It was obviously a failed breakout. I was blindsided by the high lease rates and the fact that no product was coming out of Russia. RECOMMENDATION: none. Naturally, all investors who hold precious metals should look into our reverse repurchase program whereby they can capture current lease rates. It makes no sense to own physical precious metals without gaining a stream of income. Please call with any questions.PALLADIUM: YESTERDAY'S RECOMMENDATION: none. Although I think this market is going higher, the risk/reward relationship is just not attractive. There is nowhere to put a calculated stop. We could see a $40 drop and the market could still be good. No thanx. RECOMMENDATION: none.Leonard KaplanChief Bullion Dealer