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

To: mcg404 who wrote (18410)	5/26/2003 8:14:57 AM
From: sea_urchin	Respond to of 81972

John > When someone defaults on a debt obligation, doesn't that money get taken out? Maybe, maybe not. They may decide to "roll it over" and, in fact, lend the creditor some more. The last thing they want is insolvency. But I can see that you understand the situation, the collateral is the "backing" to the debt and the debt is the "alter ego" of the credit, which is the money. While you are busy mulling over the relative merit of gold as an investment, here's an article to read (in this morning's local rag) busrep.co.za >>>Gold mining companies are having to change the way they do business as world demand falls and new mining laws come into effect. Eric Lilford, a mining analyst with Investec, said: "The fall in demand for gold and new laws have forced South Africa's gold mining companies to consider their long-term future." The average spot price of gold was $310 an ounce last year, $40 higher than the average in 2001. But the latest figures show that world gold demand, excluding institutional investment, was 779.8 tons in the third quarter of last year, down 7 percent from a year earlier. The bullion price has been kept stable by the Washington Accord. This was signed by 15 European central banks, limiting their collective sales of bullion to 2 000 tons for five years from September 1999.<<<