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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Bill Murphy who wrote (17)	5/31/1998 12:55:00 AM
From: teevee	Read Replies (1) \| Respond to of 80891

Hi, Jimmy Rodgers is only partially correct. Central banks will never sell all of their gold holdings. Gold is held for market making purposes when the markets lose confidence in the "coin of the realm"/paper money and buy gold. This is precisely when central banks sell. There is G-7 policy to maintain confidence in members currencies. What has really dropped the price is that large commercial bank gold holdings have been put to work through gold loans and leases. These same commercial banks also actively trade covered options. Also, there are huge futures contracts at much higher prices which are being closed out with signicant loses. In addition, as gold is priced in US dollars, the price of gold has come down to match demand as gold remains at higher prices when bought with currencies that have weakened against the almighty US dollar. I think that only supply and demand will effect the price as gold has been commoditized. Good luck.

To: Bill Murphy who wrote (17)	5/31/1998 6:47:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 80891

Hi- looked at options for other gold majors..there was a 1000 contract for homestake.. wonder if you hear any rumours about if the Europeans might make a concerted effort initially to trash the dollar to bolster their coming fledgling currency? Since gold is denominated in US$,wonder what affect that would have, if Europeans try to lower dollar.. I am watching news now for people speaking about the huge debt US carries besides huge personal debt..besides huge PEs of DOW..to help start underpinning confidence in the dollar.. The rally in the Utility index of the past two trading days is definitely pointing to something..I am guessing safe haven.. bobby