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

To: Zeev Hed who wrote (6864)	7/24/1999 5:44:00 PM
From: Enigma	Respond to of 81271

Zeev <<They just did not tell us some 20 years (or more) ago when they finally decided to cut the umbilical cord between economic growth and growth of gold supplies>> But this is a myth - you're implying that there was a gold standard 20 years ago - there wasn't. It seems you're confusing the question of gold convertibility with the question of gold being held as a reserve asset by CBs.

To: Zeev Hed who wrote (6864)	7/24/1999 6:39:00 PM
From: dospesos	Read Replies (4) \| Respond to of 81271

Zeev: Hello old friend. I still think your fundamental analysis on this issue of gold is faulty, but it served you well all the same in keeping you out of gold and gold stocks during the 1996-1999 bear market. Gold is both a commodity and an alternative currency. There has never been any possibility of a gold standard since World War I. Many nations managed to scrape by until the late 1920's with the US going off in 1934. Bretton Woods was just a sop to the European idea that gold would come back. Gold is now an entirely independent currency/commodity. The central banks want to get rid of it since it is low in price and a small part of total reserves anyway, in most cases. They may change their minds when it goes up again, so the "overhang" of above ground supply could change rapidly. I think we are finally very near if not AT the end of the long disinflationary wave from 1974/80. The weekly gap down in the US dollar Index, the island reversal down in the S&P500, the threat of bonds to fall out of their channel from 1981, the island reversal lows in grains is signaling a change: all this in the midst of incredibly exuberant dollar and stocks sentiment and incredibly bearish gold and commodities sentiment. I have been negative on gold and commodities generally and have spent my time and money on the S&P500. But that is done. I have been buying grains for several weeks and am looking to get into the metals again on the long side. In fact if anyone has good ideas on North American and/or South African gold stocks, I would be appreciative of the reference. I have totally lost touch in this area. Tom