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To: Alex who wrote (23430)	11/26/1998 10:41:00 AM
From: Rarebird	Respond to of 116752

What is holding the XAU back? 1) A real exuberant stock market. 2) Tax loss selling. If one looks at the charts of HM, NEM and ABX, one can see a W being formed. The right hand side of this W should be formed by January the latest. On the other hand, the Bollinger bands are contracting, which portends a big move in one direction or the other shortly. If the revised GDP number on Friday is revised strongly upward to the 5% level, watch out: a strong BUY signal gets issued on the Gold Shares. Happy Thanksgiving to All.

To: Alex who wrote (23430)	11/26/1998 12:46:00 PM
From: goldsnow	Respond to of 116752

EBRD mulls buying Russia's gold-backed bonds 11:13 a.m. Nov 26, 1998 Eastern MOSCOW, Nov 26 (Reuters) - The European Bank for Reconstruction and Development (EBRD) said on Thursday it was working on a plan to lend money to Russian gold producers via the acquisition of Russian gold-backed certificates. ''We are discussing this plan, it is at an early stage,'' EBRD Russia chief representative Neil Parison told Reuters in an interview. Another EBRD official said the plan under consideration, which had not been approved and the details of which could change, involved the issue by the Russian finance ministry of gold-backed certificates in return for a loan. The loan would be used to finance the companies' production, on the basis that they would deliver a specified amount of gold at the end of the period, which would then be sold at market prices to repay the loan. Industry sources said the amount being discussed at the moment was approximately 50 tonnes of gold. The EBRD would not confirm the figure. Preliminary discussions are that the loan would be for a period of around one year to 11 months and then repaid with the proceeds of the sale of gold. If the gold companies could not produce the 50 tonnes, Gokhran, the state precious metals and stones reserve and part of the finance ministry, would undertake to cover the gap, according to preliminary plans. The EBRD would not hold the gold nor take delivery of it. Parison said the idea of such a scheme was that it would give Russian gold firms up-front financing for their projects instead of having to wait until the end of the production cycle, around one year, before they got their proceeds. Such a scheme would protect the producers from inflation, likely to be high next year, and further falls in the rouble. The EBRD official said such a project would not only help try to Russia but would also in the longer term try to foster liberalisation of the gold market, where Gokhran still holds a monopoly on gold sales. Gokhran's head German Kuznetsov said in October than the original plan involved Russia's central bank paying for the bonds in roubles. But a central bank official later said it had different plans as it had requested the government to grant it a licence to finance gold output via commercial banks controlled by it. Kuznetsov was quoted as saying at the beginning of November that the bonds could be sold to Western banks if the central bank refused to acquire them. Copyright 1998 Reuters Limited.