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

To: Zardoz who wrote (1946)	10/31/1998 7:21:00 PM
From: Bill Murphy	Respond to of 81058

Hutch, You do stretch the mind, and do it well, on an early Sat nite. You say that LTCM was a gambling house. " Nothing more" This is from my last www.lemetropolecafe.com commentary: The XAU closed at 75.39 up 28. At one point in the week the XAU rallied over 5 points on a $1.20 move up in gold. I was queried on that. My thought - it came after the Merrill Lynch commodity derivative news. When the so called smart money smells a gold move to the upside, it often buys the likes of Barrick, Newmont, Homestake, etc. Back to the theatre of the absurd, which brings us to the Bank of Italy. After initially denying knowing about the bank's involvement with LCTM, Governor Antonio Fazio now says it was "one of five pilot portfolios". These pilot portfolios are managed by "intermediaries of high standing, are managed on criteria of greater dynamism, with positive results, " he said. I am a bit puzzled. Are central banks supposed to exude dynamism? The next statement reads ( Bloomberg, Oct 28 ) " the original decision to seek more active management of the Bank of Italy reserves was made on account of the large amount of gold in the reserves." One can read this in many ways. I read it this way. 1- where there is smoke, there is fire ( this is not the only central bank involved in dynamism ) 2- a good signal that it is time to be bullish for the price of gold. The point is, if LTCM is a gambling house as you say, then the central banks of the world have decided that Las Vegas or Monte Carlo is not such a bad idea. If the central bankers of the world, the most conservatives of conservatives, are, thinking like this, I suggest buying gold and gold and silver shares is a lay up. Happy Halloween H, Bill