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

To: philv who wrote (21949)	11/22/2004 9:07:11 AM
From: sea_urchin	Respond to of 80963

Phil > The buyers are never disclosed, no interviews, no reason why, yet the sellers get the headlines Yes, I was thinking that myself. After all, if the CBs wish to sell their gold, why should anyone want to buy it -- unless, of course, it's all those alleged short-sellers who were caught with their pants down! > But I really don't know why there is any gold at all in any of the C.Bs. Gold only covers a tiny fraction of the fiat money they print, and if there is a collapse in the monetary system, the little gold they have won't bail them out anyway. The gold is an anomaly, as Keynes said -- a barbarous relic. The CBs, in fact, are stuck with it but nonetheless it must be a hard decision to sell it when its price is appreciating. > The answer of course is it is all a confidence game, a facade, and the very little gold they have is touted as evidence and an anchor of their solid sound monetary reserve. I couldn't have said it better myself. Go to the top of the class! > With a pure gold standard, all the accumulated world debt would not be possible, and where would we be then? Now you are sounding like Greenspan. Be careful that the Fed doesn't call for you.

To: philv who wrote (21949)	11/23/2004 4:20:49 AM
From: GUSTAVE JAEGER	Read Replies (1) \| Respond to of 80963

Re: The buyers are never disclosed, no interviews, no reason why, yet the sellers get the headlines. I heard on a radio station that the French bullion will never be delivered to the buyer(s) --the gold ingots will remain in the Banque de France's strongroom... which somehow provides a clue to the buyers' identity: either large financial institutions and/or other governments. Now, my hunch is that the Chinese are buying out Europeans' gold... As I said in previous posts, Chinese got the gold bug... So what's happening is that, over the next 6-10 months, the ownership of French, German, Italian,... gold will be bequeathed to Chinese banks, that is, state-owned banks. Of course, it's a geopolitical risk for China to keep huge amounts of bullion deposited in foreign countries, however, there's a hedge: France's --and other EU gold sellers'-- huge FDI in China. If, God forbid, things ever turned sour between China and, say, France to the point where the latter confiscates the Chinese gold deposited in the Banque de France then all China would have to do is confiscate French assets in China... Fair deal? Gus