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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Jamey who wrote (18365)	5/24/2003 9:10:21 AM
From: sea_urchin	Respond to of 81956

James > Youre off base on this one, imo. Not at all. I'm right on the ball. If you want to buy "real" gold ie bullion, gold coins, what have you, then buy it, and put it in your own safe. What's going on here is an attempt by the banks to enter the gold business by offering coupons, securities, certificates, vouchers, bits of paper instead of the real McCoy. (Actually the banks are there already, and that's the problem). The net effect of the new "paper" gold is to increase the amount of "gold" in circulation, in other words, it increases supply and in a situation, in fact, when mine supply is almost as high as it ever was. The point I am trying to make, that is if you hoping for a serious increase in POG, is that the amount of available gold diminishes and doesn't increase. This new "paper gold", in fact, increases both supply (because it is a gold instrument) and availability. So, if you support this new venture you have only yourself to blame when the gold price doesn't rise. Sure, it's legit -- at first. In fact, I have no doubt they have the gold in their vaults and if you ask you can get it. And, if they don't have it themselves, they will borrow it from the guy next door. But how many people will ask? Very few. That means the gold is just lying around doing nothing. Don't believe it. Have no doubt that they will lend some or lease some to someone else and so, eventually, the amount of gold in relation to the claims against it becomes less and less. This is not a fraud per se , it's the way banks work, especially bullion banks. In fact, this is exactly the problem that Bill Murphy and the GATA people have with the central banks. The banks allege they have the gold but in the opinion of GATA at least 15,000 tonnes is gone --- and the books don't show it. But don't worry --- all the "paper" gold is still there. In fact, as much as you want.