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

To: Enigma who wrote (7620)	9/3/1999 6:48:00 PM
From: m jensen	Read Replies (1) \| Respond to of 81247

>I'm assuming the CBs are honest (maybe too much to hope). If they accept cash for gold they have leased out they can no longer treat it as a gold holding so to square the books they have to replace the gold in the market - or report it as a sale. Seems terribly simple to me. d< Double D there in lies the crux if CB leasing is as extreme as some feel, would it not be prudent to begin buying on the open market to hedge against what may well be defunct loans and loss of physical?? If so the time to step up to the plate would be now? Just thinking out loud Mike

To: Enigma who wrote (7620)	9/4/1999 7:29:00 AM
From: sea_urchin	Read Replies (3) \| Respond to of 81247

I don't know the facts --- I am speculating, and not without good reason, that when the repayment time comes the CB will accept cash in lieu of gold. Sure, it will then be reflected as a gold sale but the bank does not know that prospectively. If you have read my posts I have said repeatedly that the same gold is then sold TWICE -- once by the miner/speculator and once by the CB, in lieu of the gold repayment. In any event, the actual figures reflect CB sales as the smallest component of total gold supplies. There's nothing dishonest about receiving cash, at market value, for an asset. It is terribly simple, as you say. That's why I don't know why you are arguing with me. My concern relates both to how the banks receive payment or repayment, and to the actual short position. For months/years I have heard how very short the market is --- amounts quoted range between 3000 and 14,000 tonnes. Yet, despite increasing jewellery and investment demand (ex WGC), I do not see any impact of apparent short covering on POG. So, I wonder (1) just how short the market actually is and (2) whether some means exists for short covering other than purchase on the market. Clearly, if miners have sold forward then that amount of production is unavailable but, as far as I can see, there is no reduction in production in the quoted statistics --- only an increase. So, I am speculating that the shorts are able to by their gold loans back for cash. If you have an answer I would appreciate you telling me.