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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (68308)	9/27/1999 7:24:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 132070

Henry, thanks for the elaborate reply...interesting thought that the liberalization of capital markets has contributed to gold's decline. re. the Central Banks, my understanding of this is that the European CB's were the most active sellers in the recent past and the implicit threat of the Fed with it's vast gold reserves one day joining in the selling was probably a major negative overhanging the market. in today's announcement it was stressed that the Fed won't do any selling in the foreseeable future either. i believe some Asian CB's were buyers rather than sellers on occasion, so CB pressure on the market is indeed a lot lighter now than it was before today's announcement. since previously agreed sales are still to take place the market won't suffer a sudden supply shock anyway and i agree that one shouldn't expect too much for now in terms of price appreciation. we'll see how things stand once possible intermediate price targets are met. regards, hb