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

To: IngotWeTrust who wrote (1058)	1/8/1998 2:27:00 AM
From: PaulM	Read Replies (1) \| Respond to of 1756

O 49er, I'm not sure I get it. The release says that 20 % of a CB's gold holdings AND 20% of its dollar holdings should be held at the EMI. not 20% of the total of the two as you suggest. i.e. <<203 tons were off=loaded in 96....in order to get back the 40.6 returned from the EMI>>. 40.6 is exactly 20% of 203, consistent with my interpretation of the release. More importantly, what does the percentage of gold and dollars held at the EMI have to do with the percentage of gold relative to the rest of the total reserve base (e.g., percentage of gold to percentage of dollars)? I can have a reserve base 1% gold and 99% dollars, so long as I have 20% of each at the EMI I satisfy the requirements set forth in the press release. I suppose the press release does suggest that in the long run, if the EMI becomes THE central bank fo europe, that the total reserve base will be quite high at 20% (with the CB's treated as branches with no reserves of their own?) Positive for gold or any reserve currency. By the way, apart from the 10% number everyone is focusing on (isn't the key question also what the total size reserve base will be? Am not very familiar with EMU or its history, so help me out if I'm missign something.