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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: PaulM who wrote (3721)	12/1/1997 9:44:00 PM
From: PaulM	Read Replies (1) \| Respond to of 116815

The Swiss pronouncements have less importance than this thread is crediting them with. The Swiss are only doing this because of the proposed union. The currency's history has proven again and again the advantages of gold-backed currency. Being some of the world's biggest gold fans, they have much more gold reserves than will be required under EMU. More importantly, it really doesn't matter how much gold they have, becuase they will no longer be in control of their own currency anyway. A Swiss change of heart toward gold really has nothing to do with it. On the other hand, other CB's, with less gold, will likely need to be buyers to satisfy asset or reserve requirements. That's why the issue is not what the Swiss or any other individual CB is doing, but what the EMU backing will ultimately be. In that regard, the recent statements by the Bank of England Governer that "gold is at the bottom of the pile" and threfore won't be in abundance on EMU bank balance sheets was much more damaging. I found that statement very curious and not very credible because (1) it was gratuitous, (2) England won't be a part of the initial EMU formation anyway, and wil have no say in the matter (3) England might not join the EMU at all, and (4) the reason England might not join is because of inevitable German dominance, the Germans coincidentally being fans of gold. So with regard to ultimate EMU policy, most telling statments are those recently from the German Central Bank that "Germany will not sell one ounce gold."