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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (7682)	1/15/2008 12:46:31 PM
From: Amark$p	Respond to of 50580

Do not think Central Bank Gold Sales will be much of a problem for the rest of this year. Most Central Banks have signed WBGA agreement limiting their sales to 500 tonnes per year. Currently, central bank sales are right on schedule. 134 actual tonnes sold vs. "scheduled sales" of 149 tonnes. Thus 15 tonnes behind not including Swiss Sales for month of Dec 2007 which are estimated at 13 tonnes. IMF is part of the WBGA rules limiting annual sales to 500 tonnes. The recent 42 tonne sale by ECB during the week of 12/21/07, hardly even budged the POG down although this was 8.4% of total annual sales allowed in just one week. The only way central banks are going to be able to move POG lower is somehow get the GLD/other gold ETF holders to panic sell their gold onto the markets, IMO. Something like US/Canada/England/Euro area announcing raising the capgains tax rate on gold to 50%, effective 4/1/08, while allowing investors to sell before 4/1/08 at existing rates would sure cause a lot of ETF gold to hit the market in 1Q08!!! Now that would do the trick. The status quo of central bank gold sales being limited to 500 tonnes per year limits the impact on the POG, something new will have to be tried...