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

To: IngotWeTrust who wrote (28202)	2/14/1999 1:38:00 AM
From: Alex	Read Replies (1) \| Respond to of 116759

Central banks urged to sell 75% of their gold Business Day, 4 Feb 1999, p 14, The Star Business Report, 4 Feb 1999, p 3, Financial Times, 4 Feb 1999, p 24 Speaking at the Investing in Africa Mining Conference (Indaba 99) held recently in Cape Town, Michael Coulson, head of global mining research at Paribas, proposed that central banks should sell 75% (24 kt) of their gold holdings over a decade so that the gold price would eventually reflect the annual supply deficit. An alternative proposal was to sell gold-backed bonds, managed by the International Monetary Fund (IMF), over the same period. These would be redeemed in gold upon expiry. These measures would ensure the transfer of gold from the increasingly disinterested central banks to the hands of private investors. Coulson blamed both central banks and producers for the poor state of the market, saying they had colluded in the lending of gold for the derivatives market, effectively putting a cap on the gold price. Central bank selling had weakened the gold price, but this had been further aggravated by the huge increase in forward selling.