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

To: IngotWeTrust who wrote (83783)	3/26/2002 3:46:59 PM
From: Alex	Respond to of 116762

German bank chief considers gold sales Financial Times; Mar 26, 2002 By REUTERS: AGENCY MATERIAL Bundesbank President Ernst Welteke signalled yesterday that the bank might consider selling part of its gold reserves and reinvesting the proceeds in shares as well as in bonds, reports Reuters from Frankfurt. It was the second time in just over a month that Mr Welteke had suggested the Bundesbank, which with 3,500 tonnes is the world's second-largest official holder of bullion after the US, would sell some of its gold reserves. But it was the first time Mr Welteke had mentioned investing in a stock market portfolio. "In the medium term, we must consider whether we can sell . . . some gold and replace it with securities," Mr Welteke was quoted as saying in yesterday's Frankfurter Allgemeine Zeitung. He said that besides debt issues the Bundesbank could "turn to a mixed portfolio of Euro Stoxx 50 shares and other blue-chip shares". Several central bankers, speaking on condition of anonymity, said they were taken back by Mr Welteke's words since equities were not normally used as an investment vehicle for official reserves. A Bundesbank spokesman separately said the bank did not plan to sell any gold before the current central bank agreement on gold sales expires. "The gold agreement is still in force and we consider it binding," the spokesman said, adding that only after 2004 could a decision be made on future Bundesbank investments. "We certainly have an opinion on that, but we will not make it public," a finance ministry spokesman told a regular German government news conference when asked about the report. "From our side, and that's the important announce-ment, there are no plans to touch the gold reserves," he added. Copyright: The Financial Times Limited 1995-2002 globalarchive.ft.com