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 (83722)	3/25/2002 8:56:50 AM
From: E. Charters	Respond to of 116764

I think they fear that it is profoundly not a command economy. However, perhaps they would like to appear that they can operate as if it is. Confidence. On the other hand I believe they should know that selling drives the price down. Perhaps they believe that it won't be as bad selling gold, as it will selling T-Bills, currency reserves or stocks and bonds. If they had not already sold the gold, I would say that the sale could be a demonstration of their faith in gold's price stability. After all, you cannot sell a reserve for a dollar an ounce and claim any sort of victory? Why sell cheap? It makes no sense, unless the Euro is what you fear might languish. Funny they should think that. The IMF used to hold gold auctions ever 2 to 3 months in Europe, England and the US in the 70's. They sold about 2,000,000 ounces per auction. (68.521 short tons) They thought it would hold the price down, but it had no immediate effect. If there really were an honest to gosh auction of 3500 metric tonnes in about 2 years, it could exceed the old IMF auctions by a margin of at least 4 times. I would think that this and the rumoured-but-never-materialized Swiss gold sales would really depress the market. The Germans have stepped up to the plate twice this year on gold. The first time it was supposed to be a false alarm. Perhaps they are shaking the tree. If they intend to sell 700 tons, not 3500, then announcing the sale and backing off, will let them enter the market without scaring the heck out of it. It's either that or yet-another-scandal of: "we have already sold it, but we didn't have the heart to tell our shareholders." Let's face it, the banks sell 2,000 tonnes per year already to finance gold shorts, and the mines sell only 2000 tons. So 20,000 tons is "missing" since 1990. We wish the Bundesbank would own up, and let people into their vaults. But we know that will never happen. EC<:-}