Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Eashoa' M'sheekha who wrote (11139)	5/3/1998 12:43:00 PM
From: Terry Rose	Respond to of 116764

Taurus, Interesting post. Since gold reserves are part of the reserves of the EMU and an asset, you are very perceptive that it will take major hoop jumping by a participating country to dump gold. This is why Belgium and the Netherlands sold gold before the meeting. Now, if they want a better return on their gold assets all they have to do is stop leasing gold for a paltry 1-2% yield and let the resulting short squeeze drive the POG upward. The fact that these diverse countries have entered an agreement which could have broken down as late as yesterday is historic. A formidable competitor to the dollar has now arrived and the clock is ticking. The Swiss franc is a strong currency which has a substantial gold reserve to back it up. Even if some of their gold is sold to pay off Holucaust survivors or their families, they still plan to keep 25% of their reserves in gold. If the EMU wants a strong currency and why not, they should follow the Swiss and have at a minimum 25% gold reserves. It has taken years to get to this point, I don't think that they will risk failure by starting off weak. The article that Alex and Paul posted on the EMU meeting ends with the following statement "the EMU would be based on existing bilateral central rates." Does any one know what these rates are and what the percent or yield is? There was some discussion that if the central rates were 4% the Central Bank of Germany would need to raise their short-term rate to this level. One last thought. I have watched three national Sunday news hours this morning and so far the EMU has not even been mentioned. What a pity.