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

To: philv who wrote (6743)	7/7/1999 5:21:00 AM
From: sea_urchin	Read Replies (1) \| Respond to of 81247

philv : I think the CBs, like most true gold investors, are/were cornered in the market. Holding an asset which no longer was what it was and whose price is falling. It's not something sinister and I think most of us realise what the circumstances are. Even if some of us don't agree with the motives. As the price fell CBs tried to make some return on their gold by gold loans, no doubt to short-sellers and it is also clear that this action contributed to the decline in POG. Nevertheless I contend that, since there was no real support for the gold price for whatever reason which there was not, it was the market and not the loans/short-selling which was the real cause of the fall in POG. You suggest that CBs did nothing to support the gold price. How do you know? For a long time POG held above $280 --- and at a time when the CRB index of commodities continued to fall. In the circumstances, both Hutch and myself (and I believe Guru Tom) contended that there had to manipulation to keep the gold price up . Of course, the fashionable theory was that there was downward manipulation of the price so our opinion was not taken seriously. As the gold price continued to fall it is apparent (to me at any rate) that the lack of confidence in the metal as a reserve currency continued, even accelerated. In fact, today, I just wonder who buys it other than short speculators or, possibly, jewellery manufacturers. And it is also true that the hemorrhage on the price is not yet over --- by no means. The CB/?IMF selling has only just started. It is a "fire sale" in which the banks, themselves, are burning. To say nothing of the gold miners. Clearly it's every man for himself --- and the Devil take the hindmost.