To: Winer who wrote (1058 ) 11/16/1997 2:48:00 PM From: Douglas Read Replies (1) | Respond to
A MUST READ FOR ANYONE HOLDING GOLD OR GOLD STOCKS!!!!!!!!!Thanks Winer for the interesting information.Just recently I was reading a release from Frank Veneroso, a noted international gold market analyst.This is what his exhaustive research on the world gold market has uncovered and I quote from his press release,"The Bundesbank disclosure of massive gold loans confirms our view that the global gold market deficit is 700 tonnes larger than consensus estimates and that the aggregate short position in the gold market is too large to be covered...This is the beginning of a reappraisal of the gold market that will slowly unfold....The very large amount of current gold forward sales,short sales and central bank gold loans is forcing a day of reckoning in which the demand for gold to cover all of these positions will overwhelm current supplies, greatly disrupt orderly markets and send gold's price soaring".Mr. Veneroso goes on to say,"Official and private gold loans total 8,000 tonnes,far more than the 3,000 tonnes that most analysts project,compared with annual production of 2400 tonnes.Germany's central bank,long recognized as one of the strongest supporters of gold in the central banking community, has just disclosed to a German newspaper that it has loaned on order of 10 percent of gold reserves to the market".Regarding the recent crash in the gold price,Mr. Veneroso attributes "mad dog selling" by European central banks which are anticipating new gold sales rules and prohibitions to be established by the emerging European central bank in April 1998."European central banks are taking their last opportunity to dress up their books for admission to the European Monetary Union by selling gold".Douglas.
