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

To: John Hunt who wrote (36602)	7/6/1999 8:16:00 AM
From: Enigma	Read Replies (1) \| Respond to of 116756

Kitco as is so often the case hasn't quite got its act together - no NY Zoom quotes yet - main chart shows gold still sliding, d

To: John Hunt who wrote (36602)	7/6/1999 8:17:00 AM
From: Tomas	Respond to of 116756

UK gold sales over-subscribed - BBC, July 6 Gold retailers feel that sales could fall in the long-term The Bank of England has sold 25 tonnes of gold in a public auction at an average price of $261.20 per ounce. The auction was five times oversubscribed, with bids for 4m ounces. It is the first stage in a plan to sell off half of the UK's gold reserves. The Bank says it plans to sell the gold in order to diversify its reserves, as gold has been declining in value. But the news has depressed the gold price, which has fallen by 10% since the decision was announced in May. There has been vocal opposition to the sell-off, especially from gold producing nations such as South Africa and Ghana. They fear a further fall in gold's price could seriously damage their mining industries and economies. The South African president, Thabo Mbeki, says a quarter of his country's 300,000 mining jobs could be under threat. In the UK, a Southampton jeweller, Kim Rose, is attempting to gain a High Court injunction to stop the sale. He says the government is acting in a reckless and irresponsible manner, arguing that it doesn't make sense to switch assets to the unstable euro. Gold sales everywhere Other central banks, and the International Monetary Fund (IMF), are also planning to sell gold. The IMF's sale of 300 tonnes is to finance debt relief for Third World countries. Central banks in Argentina, the Netherlands, and Belgium have also sold gold, and Switzerland is expected to follow suit. Paper currencies The Bank of England will be taking bids for the gold electronically or by hand. Only banks and dealers belonging to the London Bullion Market Association can bid. Each 400 ounce bar will cost more than £65,000 ($100,000). The Bank is staggering the sale over several months in order not to hit the market with too much gold. It will now hold more of its reserves in paper currencies, using the gold sales to buy dollars, yen and euros. But the depressed gold price has already wiped out £400m from the value of the remaining reserves. news.bbc.co.uk