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

To: Ironyman who wrote (44754)	11/8/1999 7:41:00 PM
From: Alex	Respond to of 116764

PRODUCERS CRITICIZE SARB DECISION TO LEASE GOLD JOHANNESBURG November 4 1999 Sapa-INet-Bridge South African gold producers have criticized the South African Reserve Bank's decision to lease some of its gold reserves, but some added that it was not in the industry's best interests if the gold price was to rise too quickly. "It's not the amount but the principle ... the principle isn't all that appropriate," said Gold Fields chairman and chief executive Chris Thompson. The Reserve Bank announced at the weekend that it had leased 300,000 ounces of gold, or about 7.5% of its total bullion reserves, a move which drew accusations of hyprocrisy from industry analysts. But Thompson added that it had become clear from a producers' and hedgers' point of view that "it is not in anybody's interest for the gold price to rise too quickly." He explained that there had to be some liquidity in the market and a rapidly rising gold price would mitigate against this, adding that there would be problems "all around" if gold had spiked to $400/oz and remained there. "We must make sure we don't turn the lemonade into lemon," Thompson said. Kelvin Williams, Anglogold's marketing director noted at his company's quarterly results last week that there had been virtually no physical demand for gold "east of Istanbul" when the price rushed to $325 an ounce earlier this month. But good buying interest reappeared when the metal slipped back to $292/oz, underlining the price sensitivity of gold as a consumer product rather than a paper-market play, he added. "I'm very surprised," said David Kovarsky, finance director of Western Areas Ltd and Randfontein Estates Ltd. "One can understand what they (the SA Reserve Bank) are saying (the amount offered for lease is relatively small) but I am a bit disappointed. "Five weeks ago there was the European central banks' announcement on capped gold sales and reining in leasing activities. In the light of this, news of our reserve bank leasing gold is disappointing." [ index by subject - length \| newswire root ] source: gopher://gopher.anc.org.za/00/anc/newsbrief/1999/news1105 processed Fri 5 Nov 1999 08:50 SAST. anc.org.za

To: Ironyman who wrote (44754)	11/8/1999 9:02:00 PM
From: d:oug	Read Replies (1) \| Respond to of 116764

eric, you mentioned that no one might be willing to borrow and sell at this mornings one month lease listed as a flat one percent. By chance do you have access to Bill Murphy's Cafe web site that has a lot of highly regarded pro gold and pro freedom in business articles that speak what really is happening in today's global market place ? Presently at the Cafe is an article about the lease rate situation. If you did once try the 2 week free membership and it has expired, then I recommend that you justify being able to obtain a second 2 week trial membership thru use of another e-mail name to obtain the necessary code to enter the Cafe, with the following thought: "Alls fair in love and war" As Bill Murphy has declared the "GATA War". Midas: John Brimelow - The Big Clue Date: 11/8/99 2:52:43 PM EST From: LePatron@LeMetropoleCafe.com Le Metropole members, Midas du Metropole has served commentary at the James Joyce Table. The feature of this Midas are the observations of the Cafe's John Brimelow about the lease rate situation. I believe John has nailed "the big clue" about what is really going on behind the scenes in the gold market. "Much play has been made by the bears over the past two weeks of the 90% decline in one month rates since the Sept 29 peak. Little is heard of the fact that long term rates (which is what hedging mines want to borrow) remain at levels rarely seen before. Nothing is said of the stunning 1.72% gap in one and two month gold, the latter being followed after a modest Y2K effect by a gentle positive slope as is normal in gold." Don't miss his insightful commentary. All the best, Bill Murphy, Chairman, Gold Anti Trust Action (GATA) gata.org Le Patron, Le Metropole Cafe lemetropolecafe.com