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

To: waldo who wrote (22054)	10/21/1998 11:18:00 AM
From: waldo	Respond to of 116761

>>Bundesbank Hans Tietmeyer continues to say that there will be no rate cuts in Germany and we continue to believe him. Yesterday's rapid descent of the DOW was attributed to rumors of another hedge fund in trouble -- this time Paloma Partners with $4 billion under management. In London gold trade, the metal was up slightly on a soft dollar/yen. An announcement was made by the government of Argentina that it would be selling the last of its gold in the open market. Representing 1.54 million coins and about 350,000 ounces, the gold will be sold at some point in the future although no further details on the timing of the sale were provided. We still think the announced sale is related to the successful $250 million Argentine bond offering on Wall Street this week. When the sale is completed, Argentine will have no gold remaining in its Treasury after decades of hyperinflation, government deficits and currency problems -- the end of a long road. Argentina is straining to maintain a peg to the dollar that began in 1992. Argentina's consumer price index has increased four times over the period but there has been no devaluation of the peso against the dollar. Amounting to some $100 million at the current gold price and seemingly to occur over the next several months, the sale is unlikely to have any lasting effect on the market. It was something of a surprise that Argentina announced the sale before it occurred. Usually, gold sale announcements are made after the fact.<< usagold.com W