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

To: Enigma who wrote (6459)	6/16/1999 11:35:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 81996

Ron - gold is held by the US as a reserve asset - end of discussion Then why isn't the Fed selling and buying gold like they do Yen, Euros (not marks)... etc. A reserve asset is to be used to maintain equilibrium in currency markets, not take up storage. The very term "reserve" implies that it is something held back and accumulated in anticipation of its future use. US gold is not being "used" except as a mechanism of leasing. It certainly is not being delivered according to it original intent, that of being the backing of a demand-note, convertible into gold. Thus, its "reserve" status is made moot, and thus questionable. It just sits there taking up space at taxpayer expense. Regards, Ron