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

To: goldsnow who wrote (6982)	2/1/1998 2:12:00 PM
From: goldsnow	Read Replies (2) \| Respond to of 116762

DAVOS-Central banks trust gold -- S.Africa's Mbeki 12:16 p.m. Feb 01, 1998 Eastern DAVOS, Switzerland, Feb 1 (Reuters) - South African Deputy President Thabo Mbeki said his discussions with European central bankers at the World Economic Forum's annual meeting showed their trust in gold as a store of value remained unshaken. ''The level of confidence in gold as a store of value continues...It would be recognised as a problem if people would say 'Let us offload', but nobody is saying that,'' Mbeki told a news conference. ''Even with regard to the new European (Central) Bank, gold will continue to be part of what backs the euro (the planned single European currency),'' he added. ''It is firmly our view that the things we have been discussing with the central banks of western Europe, the EU central banks, here during this meeting and other discussions we will have with the United States, with the Federal Reserve, will produce circumstances that militate against the speculative selling of gold,'' Mbeki said without elaborating. He said he had talked to representatives of the German, Dutch, French and Venezuelan central banks in Davos. French central bank governor Jean-Claude Trichet said on Saturday that the Bank of France did not intend to sell its gold reserves. Sales of official reserves and market fears of more central bank selling helped drive gold prices to an 18-1/2 year low of $276.50 an ounce in January. The price has since recovered to around $302. If gold prices stay around current levels, this will threaten the existence of some 14 gold mines in South Africa that together employ around 116,000 people. Should these mines shut, up to a half million people would be affected, Mbeki said. REUTERS