To: Lucretius who wrote (27493 ) 2/1/1999 9:17:00 PM From: Zardoz Read Replies (2) | Respond to
The Globe and Mail reports in its Monday, Feb. 1, 1999 edition that a key member of the European Central Bank, Sirkka Hamalainen, says she sees a declining role for gold in the reserves of the world's central banks, but adds that Europe's central banks have no plans to unload the yellow metal soon. The Globe's Alan Freeman writes Ms. Hamalainen says gold no longer provides "a guarantee of low inflation or stable monetary policy any more." But she very clearly says the ECB and the national central banks in the 11 European Union countries that have adopted the euro have no interest in dumping their bullion on the market, for fear of hurting the price. Gold producers, led by South Africa's AngloGold and by Canadian companies including Barrick Gold and Placer Dome, have lobbied to restore gold's value as an essential part of central bank reserves. Europe has been a particular concern because the 11 central banks in the euro zone hold about 40 per cent of all the gold reserves in the world's central banks. canada-stockwatch.com kitco.ca
