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

To: long-gone who wrote (39229)	8/18/1999 3:00:00 PM
From: goldsnow	Read Replies (3) \| Respond to of 116845

Demand for gold rising Gold is maintaining its attractions for investors - if not for the UK government By the BBC's Rodney Smith Who says gold is out of fashion? A lot of London know-it-alls do - but what do they really know? Not much, judging from the latest figures from the bullion industry itself. The World Gold Council says that demand for gold rose 16% in the second quarter of the year in spite of, or because of, the Bank of England's 25 tonne gold sale last month. The really staggering figure is the 32% increase in investment demand for gold - so much for those who insist that since it cannot earn interest or a return, but is inert, gold is not an investment. Remarkable rearguard action Overall demand set records in India, Asia, the US, the Gulf States and Mexico. All people who either mine gold or have always bought gold because they know its value to them. In East Asia, a return to sunny growth and fast performing stock markets have chased away the economic winter of the past two years and given people a little of the ability to indulge themselves again. How much more attractive when the metal's cheaper than it's been for years. The gold price has remained remarkably resilient to big central bank sales and threats of sales, pinned between $255 and $260 an ounce. The gold industry has engineered an impressive rearguard defence in the wake of official plans to sell gold holdings. The UK is doing it, Switzerland and others say they will, and the International Monetary Fund is threatening to offload tonnes too, to feed the Third World. Gold miners have been protesting against central bank sell-offs The pressure grows daily on Her Majesty's Treasury in London to change its mind about gold sales, the US Congress is barracked by its own and other gold miners, warning of the dire consequences for jobs, national income, investment, you name it, if the gold price is depressed much more. These are the bullion buffs who propose that the International Monetary Fund simply revalue the gold it holds to near market prices. Most of the IMF gold is accounted for at the prevailing official rate when gold was officially demonetised in 1972, that is $42 an ounce. One US senator has even suggested that the US take back the gold it gave to the IMF and revalue it. That could have an interesting effect on the US reserve picture, but might send a rather inward-looking signal to the rest of the world. Other factors Even senior IMF officials talk of alternatives to gold sales to raise cash for developing countries. But the gold price could go down some way yet. It almost doesn't matter. Your Indian investor, your Korean jewellery buyer (remember, they gave their gold to the government to help bail it out of crisis two years ago) don't believe that. They know there are other elements at play here. Economic uncertainty, always in the wings, currency instability, a fact of life in many parts of the world, and then the dark thought that one day the hard and stable US dollar will weaken. Then, dollar-priced gold will become even cheaper in won, yen or rupees. That, and not a constant stream of gold sales, is what some gold buyers will be waiting for. news.bbc.co.uk

To: long-gone who wrote (39229)	8/18/1999 8:01:00 PM
From: Rarebird	Read Replies (1) \| Respond to of 116845

SAO PAULO, Aug 16 (Reuters) - Deepening uncertainty over President Fernando Hernrique Cardoso's prospects of pushing austerity measures through an increasingly resistant Congress is likely to drive local shares and the real currency further down this week, traders said." biz.yahoo.com Bovespa chart: quote.yahoo.com^BVSP&d=3m