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

To: Bill Murphy who wrote (35862)	6/25/1999 12:41:00 AM
From: ForYourEyesOnly	Read Replies (1) \| Respond to of 117019

"There is now serious debate as to whether the IMF and/or British sales will take place in part or in whole. " METAL COMMENT FOR JUNE 25, 1999 website: lfgllc.com CLOSES METAL DEPOSIT RATES (based on 30 day maturities) August Gold $262.40 July Silver $ 5.130 GOLD 1.00% July Platinum $348.80 SILVER 1.25% Sept Palladium $330.75 PLATINUM 5.50%DAILY COMMENTARY GENERAL COMMENTS: Again, the precious metals were all higher today, albeit not by too much. As we have been mentioning, there is a lot of heavy wood ("traderese"for strong resistance) overhead and it was unlikely that we could get through these numbers easily. Gold was up 60 cents, closing over $261.00 in spot on the offer. There is some resistance at $262 but not too much. Silver made new highs on the move, but could not get above $5.15. After $5.15, we need to get through $5.18 and then $5.22. Platinum was marginally higher but could not penetrate the $350.00 price level in spot. The stage is certainly being set for a knock-down drag-out battle in Congress in regards to the proposed sale of IMF gold. This plan has already brought a raft of objections by U.S. politician. Said Saxton, a New Jersey Republican, "The IMF and the Treasry should fully explain how much interest would be annually generated for debt relief; Once is becomes clear how modest the interest generated by the plan would be, there should be little support for the sales". Said Jesse Helms, the influential lawmaker, "We are unalterably persuaded that selling IMF gold reserves would adversely affect the very countries the administration intends to assist and further damage the U.S. domestic gold industry". By the way, 36 of the 41 countries that would benefit from IMF sales are gold producers. And just one, Ghana, will lose about $50 million in earnings due to the recent drop in gold, about 33% of the total annual benefit. The World Gold Council released a poll that the majority of the British public is against the government's plan to sell more than half of their gold reserves. They also announced that public opinion in France, Germany, Italy, U.K., and the United States remained supportive of the role of gold as a reserve asset. There is now serious debate as to whether the IMF and/or British sales will take place in part or in whole. And the shorts are getting nervous and covering a bit. 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.