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

To: jgibbs who wrote (3122)	1/19/1999 9:39:00 PM
From: Bill Murphy	Read Replies (2) \| Respond to of 81867

Jim, Yours is a very interesting take. I will check around on that. This is a quick note that I sent to our members. I am going to go over it with them in greater detail tomorrow. Bill Le Metropole members, Frankfurt, Jan 19 ( Reuters )- ECB SAYS ESCB GOLD RESERVES DOWN SLIGHTLY ON WEEK DUE TO SMALL SALE BY 1NCB. This statement was very unsettling and very peculiar as to its timing and its lack of explanation as to what it meant. One of the big issues in the gold (supply/demand) world is whether the ECSB ( The European System of Central Banks ) will be able to sell gold, or whether they will be restricted by the ECB itself. At a press conference on Jan. 7, ECB Vice President Christian Noyer said that "the national central banks will keep their gold holdings for the "foreseeable future". Maybe Noyer is a futures trader where one might speak of 12 days as "foreseeable future", maybe he just lost track of time. Why was such an announcement made in this manner? Knowledgeable market sources said this kind of announcement could drop the price of gold $20. It did not as gold only closed 50 cents lower today at $286.40. These same sources said that if they were of the conspiracy minded type, they would think it were a plant to try and bully the gold market down. You are all aware that Midas du Metropole thinks that there is a very strong possibility of just such a plan; that " officialdom" and the "Counterparty Risk Management Group" headed by Goldman Sachs and JP Morgan have put a plan in place to drive the price of gold down so that they can begin to cover their massive short gold positions that they have accumulated as a result of their low interest rate gold borrowings. Today, they got a "little help from their friends" in Europe. The price of gold could have really tanked. It did not. I suspect that "Wall Street Finests" are beginning to realize that they may have a big problem on their hands. Their exit strategy for their huge gold short position might not work. Then what? We will see. In tomorrow's commentary, Midas will deal with this issue. While the CRB sank to 189.86 down 2.86 and is close to making new lows, the price of silver closed a tad higher at $5.125. Three times the bears have tried to fill a gap at $5.04 and they have been unable to do it. Methinks the silver market is explosive. It trades more like a light beaujolais wine than a heavy bergundy. The "Silver Streak" is about to leave the station. All the best, Bill Murphy Le Patron