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To: Bobby Yellin who wrote (40569)	9/21/1999 3:43:00 PM
From: Alex	Read Replies (1) \| Respond to of 116768

G7 to Sell Gold in Debt-relief Scheme, German Minister Says <Picture> Sep. 21-MAR-- [B] G7 to sell gold in debt-relief scheme, German minister says By Agence France-Presse Berlin--Sep 21--The Group of Seven (G7) leading industrialized nations will sell 14 million ounces of gold worth about $3 billion (2.88 billion euros) to fund debt relief to developing nations, Germany's minister for cooperation said today. * * * But the gold from IMF reserves will be sold to central banks, Heidemarie Wieczorek-Zeul told a press conference, and not on the open market, which would push prices down. The minister made her announcement a few days before the IMF and the World Bank hold their annual meetings in Washington. It had been expected that ten million ounces of gold would be put up for sale. The sale will raise funds to cover financing of debt relief for 33 countries which the G7 (the UK, Canada, France, Germany, Italy, Japan, and the US) had decided upon at its June summit in Cologne, Germany. That plan agreed to cut more than 200 billion dollars in third world debt. "The G7 countries made a breakthrough," Wieczorek-Zeul said, adding that she was sure the decision would be ratified by the IMF's directors. The choice of a so-called off-market gold sale was a compromise intended to maintain the precious metal's value. End The Bridge ID for this story is ZPKKHD (c) Copyright 1999 FWN futuresource.com

To: Bobby Yellin who wrote (40569)	9/21/1999 4:11:00 PM
From: Enigma	Read Replies (1) \| Respond to of 116768

Re B of E apparent backing off - I read something here but have to admit I can't find it - the B of E Release seems pretty clear. As regards the previous auction the difference seems to be that most of the bids were below the floor price and were in effect seen as sneak bids - in contrast to this auction. d

To: Bobby Yellin who wrote (40569)	9/21/1999 4:22:00 PM
From: goldsnow	Read Replies (2) \| Respond to of 116768

Now I am just curious if BoE sold gold to buy dollars or yens and in what proportion? <VBG> A falling dollar increases the risk to non-U.S. investors that they will lose any profits through currency depreciation, decreasing the attractiveness of dollar-denominated investments. Foreign Ownership The U.S. stock market was valued at $15.9 trillion at the end of the first quarter, of which 7.6 percent was owned by non- U.S. investors, according to Federal Reserve flow of funds data. Investors may also be beginning to abandon U.S. securities for better returns in Japan. The Nikkei 225 Index has returned almost 41 percent this year when adjusted into U.S. dollars while the best performing U.S. index, the Nasdaq composite, has gained just 29 percent. ``It's a question of international investors who have been under-represented in Japan' now buying in that market, said Edmund Cowart, a portfolio manager at Eagle Asset Management Inc. in St. Petersburg, Florida, which oversees $6 billion. ``And in order to buy Japanese stocks you have to buy the yen' and sell dollars. quote.bloomberg.com

To: Bobby Yellin who wrote (40569)	9/21/1999 4:43:00 PM
From: goldsnow	Respond to of 116768

The trade gap with Japan also widened to a record $6.8 billion. ``We do think the dollar will decline over time,' said William Dudley, director of U.S. economic research for Goldman, Sachs & Co. A growing trade deficit ``will force that,' he said. quote.bloomberg.com