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

To: Rarebird who wrote (40050)	9/5/1999 9:20:00 AM
From: Rarebird	Respond to of 116790

China buys time to stave off Devaluation: biz.yahoo.com

To: Rarebird who wrote (40050)	9/5/1999 9:23:00 AM
From: Rarebird	Read Replies (1) \| Respond to of 116790

Another view of Chinese Deflation: There are others who believe the Chinese have already devalued: stratfor.com

To: Rarebird who wrote (40050)	9/5/1999 7:53:00 PM
From: Zardoz	Read Replies (4) \| Respond to of 116790

Rarebird, that article you posted is full of crap. If these pundits are correct, why is gold the only commodity Central banks hold as a reserve? Gold is NOT the only commodity that Central banks hold as a reserve asset. But Gold Bullion is often the only reserve asset that is grouped by itself. I make reference to both Canada and England where their Silver commodities are held as: Fixed assets, commodities owned etc 35b "These consist of land, premises, equipment, vehicles, commodities (including silver) and other assets owned or recorded as such by the reporting institution. Do not include gold bullion, see item 35A." But we all know how to scan for data, don't we? bankofengland.co.uk If gold was just a commodity, why did Korea, ask its people to turn in their gold in time of crisis? They also accepted foreign currencies, as well as silver. But only the GOLD got mentioned on the news. If these pundits are correct, why has it become so difficult to locate and buy a gold coin? Because many institutional companies have been transferring their bullion holdings into coins that can appreciate faster then bullion bars. The demand for gold is setting records. According to the world Gold Council this past week, gold demand climbed 16% in the 2nd Quarter, a record for any three month Quarter ever. The exchange of gold bullion into gold coins is what is really setting the record. And those are a wash trade. The world gold council distorts the results to suggest that demand is up. But yet the price is falling. So the same marginal excess of supply is leading the push for lower gold. Supply and demand always cross, but addition supply moves the price lower. Throw in the US Dollar index currency, and gold is effectively trading lower then last Aug 98. A rise in the US dollar relative to the US dollar index, and gold may very well fall to $230. Have you ever tried to sell a bullion bar to the public, when they only want 1 Tounce. Convert your gold to a coin, and it sure is easier to unload. Hutch.