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Gold/Mining/Energy : GOLD-XAU -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (922)	12/30/1997 8:45:00 PM
From: IngotWeTrust	Respond to of 1756

4) Gold Price simply is a supply/demand function/form of hard currency for those of us who discover, recover and spend gold as money. Just 2B fair 2 us prospectors & recyclers out here in cyberland (g) O/49r

To: philv who wrote (922)	12/31/1997 12:43:00 AM
From: philv	Read Replies (3) \| Respond to of 1756

IN DEFENCE OF CENTRAL BANKS C.B.s stand accused of manipulating the price of gold; specifically depressing it by various means for a variety of motives. They are accused of trying to uncouple gold from money for several reasons, such as to allow C.Bs. greater monetary freedom, or to replace gold with interest bearing governmental bonds. They are also accused, sometimes in the same breath, of accumulating gold. Which is it? It can't be both. They are said to favour a low price, but why would they want their own holdings devalued? Where is the advantage and what is the motive? Sales of C.B. gold and planned sales are seen as obvious evidence of manipulation. However, once that gold is sold the ability to further manipulate is gone. When Canada, Australia, Belgium etc. announce they have sold their gold, do you not believe this, or do you think perhaps they have hidden that gold in a secret location? These Banks are governmental institutions, not private, and the employees are civil servants. Why would they be "conspiring" and manipulating when they are "serving" their countries and the Bank's top leadership is appointed by the government of the day? Yes, they are well aware of what is happening to the POG, as reserve calculations are made daily, and their own gold reserve figures are suffering. There are some major countries who have not sold any gold. If the object is to drive down the POG, to de-link gold from the monetary system, an announcement of a pending gold sale by say the United States would certainly do the trick. This has not happened. One must therefore conclude that the C.Bs. are acting independently, not in a concerted manner. Would the C.B.s be acting against their own or their government's best interest, are they stupid? Would they risk the credibility of their respective nations for some selfish or third party or foreign interest or gain? I think not. Yes, gold does appear to be behaving strangely when viewed in historical terms. But this situation has been on-going for many years. There would have to be a compelling reason, like national security for the C.B.s to be involved in manipulating the POG. And if C.B.s are involved, so are their governments. I say the verdict must be not guilty to the charge that the Central Banks are manipulating the price of gold for reason of lack of evidence, lack of motive.