Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: long-gone who wrote (75796)	9/2/2001 12:40:53 PM
From: long-gone	Read Replies (1) \| Respond to of 116753

No conspiracy to manipulate gold price they claim? Here even the IMF said BoE style sales of gold destroy price yet the BoE persists unchanged! Must one wonder WHY? Did the BoE & the CB's of Europe bring about many of the economic problems of Argentina Russia South Africa and...? Again, Why? Central banks must avoid open market gold sales, says IMF Janet Guttsman -------------------------------------------------------------------------------- Washington, July 27: A top official from the International Monetary Fund on Monday urged central banks to help pay for a package of debt relief by buying IMF gold rather than selling their own to steady the price. IMF deputy managing director Alassane Ouattara told Reuters that central banks should abstain from additional gold sales on the open market. ``I feel there is a consensus that the sale of gold should not affect the world market,'' he said. Ouattara declined to comment on the latest central bank sales. But the IMF is clearly upset by apparently uncoordinated moves around the globe -- gold has fallen by $35 an ounce to around $254 since Britain announced plans to sell half its gold reserves to balance its portfolio, and Switzerland is also planning to sell gold. ``There is a need to do more on coordination and may be to find a way whereby central banks can integrate this sale into their own programme of diversification of assets,'' Ouattara said, noting that he had both bought and sold gold whenhe was a central banker in his native Ivory Coast. ``I believe that many central banks in Europe, like in Asia and the Middle East would be happy to diversify their portfolio by holding gold reserves. I want central banks to participate in the process.'' The IMF, seeking ways to pay for debt relief and for low-interest loans for poor countries which have agreed to follow IMF-sponsored programmes of economic reform, wants to dispose of 10 million ounces of gold, or just under 10 per cent of its 103-million-ounce stockpile. But the idea has hit bitter opposition from the US Congress, which must approve the sales, and from gold producing countries which fear that the price will fall. ``I believe that everything should be done not to penalise the developing countries which are gold producers and which have a large majority of their populations in poverty, like South Africa, Ghana, Mali and others,'' Ouattara said. Many of these countries were not eligible for debt relief, he added. The gold price waslittle affected by the comments. ``It only means the central banks will have more to sell when and if they decide to sell,'' said chief dealer at Credit Lyonnais Rouse,Scott Mehlman ``It does not change anything.'' Ouattara, one of two deputy managing directors at the IMF, leaves the fund at the end of this week to run for president in Ivory Coast. He said the proposed IMF gold sales were not particularly large, compared to total world supply, and a market-friendly solution was still possible. ``I can see many ways of dealing with these issues without affecting the world supply,'' he said. The IMF is still debating how best to sell its gold. Officials hope for a decision before the IMF annual meetings in September. US treasury has also said it is looking at new ways of using IMF gold reserves, which were given to the fund by its member states. But treasury officials have not yet explained how this could take place and Ouattara declined to say if he thought the idea of gold sales on the open marketshould be abandoned. ``I don't know,'' he said. ``Maybe there will be a compromise -- some sales on the open market and some through central banks or other areas.'' Copyright © 1999 Indian Express Newspapers (Bombay) Ltd. expressindia.com