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To: Alex who wrote (8465)	3/18/1998 12:56:00 PM
From: Alex	Read Replies (1) \| Respond to of 116766

From USAGold site................. MARKET UPDATE (3/18/98) AM---- In the gold market this morning, COMEX gold stocks are up a whopping 89,484 ounces. The Belgians announced that they had sold an additional 299 tons of gold from its reserves in the past few months. The sales were channeled through five other central banks. This explains gold's rangebound behavior in recent months. There is another rumor floating the market that Netherlands was selling gold as well. Both had said previously that their gold reserves were high relative to needs for the upcoming European Monetary Union. Gold expert James Turk points out in the March issue of Gold & Money Report that he suspected "the Dutch and/or the Belgian" central banks of selling gold forward earlier this year for delivery in March. Perhaps it was the Belgian bank and not the Dutch doing the selling. We would have to assume that the 89,484 ounce uptick at COMEX has to do with that contracted delivery. Says Turk, "It has been my contention -- which was well stated in these letters in the ending months of last year -- that central banks dishoarded some 500-800 tonnes of Gold in 1997. This weight of Gold equals about 25% to 40% of annual production, so it would be a considerable amount of Gold for the market to absorb." He goes on to say that "the low Gold price is an aberration resulting from one-off central bank transactions which are now complete, and that higher prices will return this year as the market recognizes that further European dishoarding is unlikely." Keep in mind that lease rates have jumped since the sales have completed adding credence to Turk's argument. After the dust settles, it will be interesting to see what the gold market decides to do. As he points out, 71% of the voting power in the new EMU resides with Germany, France and Italy, who also own 73% of Europe's gold. Gold policies from here on out should be decidedly bullish in Europe. Central bankers and finance ministers from all three countries have come down in favor of gold playing a central role in the euro. Mr Turk ends with this: "As the market begins to recognize the importance of the pro-gold view of the 'big three'...higher gold prices will likely be the result....I still expect 1998 will prove to be a good year for gold." Have a good day fellow goldmesiters. This will likely be it for the day.

To: Alex who wrote (8465)	3/18/1998 2:33:00 PM
From: Abner Hosmer	Read Replies (1) \| Respond to of 116766

More detail on Belgium: Belgian central bank sells gold ahead of EMU biz.yahoo.com >>''The programme has been finished entirely. It has not influenced prices on the gold market and neither the liquidity of the monetary market,'' Verplaetse told a news conference. ''We will not carry out any more arbitrage of our gold reserves.'' ''In the third phase of EMU (economic and monetary union) the amount of external reserves held will be five to six times higher than the amount which will be transferred to the European Central Bank and one third of these external reserves will consist of gold,'' Verplaetse said.<<

To: Alex who wrote (8465)	3/18/1998 3:16:00 PM
From: Abner Hosmer	Read Replies (1) \| Respond to of 116766

Yen seen diving anew if Japan talks without acting biz.yahoo.com >>''What they are trying to do with the yen and the Nikkei is a confidence trick,'' said Peter von Maydell, senior currency economist at UBS in London. ''Verbal rhetoric has no lasting effect on a currency and you could turn grey waiting for Japan to deliver on reforms.'' ''Everyone knows they are trying to rig the market for the next two weeks and one would have thought that given there is such a close correlation between the Nikkei and the yen, they would have done something by now,'' said Nick Parsons, currency strategist at Paribas Capital Markets.<<

To: Alex who wrote (8465)	3/18/1998 3:22:00 PM
From: Abner Hosmer	Respond to of 116766

Chronology of recent Belgian gold sales biz.yahoo.com >>October 12, 1996: Verplaetse tells La Libre Belgique newspaper that after already selling 700 tonnes of gold Belgium's gold reserves were now in line with the European average and there was good balance between productive and non-productive assets. ''I have obtained the permission (from G-10 governors to sell gold) four times. I will not try a fifth time,'' Verplaetse said.<< I wonder how many of these guys went short, or told their friends to. I hope they all rot...