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

To: Bobby Yellin who wrote (30282)	3/18/1999 10:07:00 AM
From: long-gone	Read Replies (1) \| Respond to of 116796

<< higher oil prices should help :-) whom though?>> Mexico, Brazil, a friend in Texas whom is laid off.

To: Bobby Yellin who wrote (30282)	3/18/1999 5:58:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116796

Buba opposition to IMF gold sale seen softening 11:17 a.m. Mar 18, 1999 Eastern By Scott Miller FRANKFURT, March 18 (Reuters) - Germany's Bundesbank may be ready to drop its long-standing opposition to selling gold held by the International Monetary Fund, an important step towards an international debt relief plan, analysts said on Thursday. The sale of IMF gold to raise funds for poor nations has been hotly debated for years with the Bundesbank the most outspoken member of a small group of interested parties opposed to tampering with the IMF's reserves. But the latest revival of a gold sale scheme, this time by U.S. President Bill Clinton, may be too powerful for the Bundesbank to oppose, especially given the changing role of gold in central bank policies. ''I don't think the Bundesbank will keep up its opposition to gold sales, said Wolfgang Wrzesniok-Rossbach, head of precious metals and commodity trading at Dresdner Bank. ''The sales will not do any real harm.'' The controversy surrounding gold sales resurfaced earlier this week when Clinton proposed a $70 billion programme of debt relief for poor nations -- a scheme which called on the IMF to sell a small portion of its $29 billion gold stockpile. The German central bank's position remains an important question mark over the plan because of its influence over other national authorities who are opposed to the sales. The biggest hurdle the gold sale scheme faces probably will come from the U.S. Congress where lawmakers may call for IMF reforms as a condition for approving any sales. Officially, the Bundesbank is sticking to its no-gold-sale stance, claiming a divestment could be inflationary, undermine IMF credibility, and possibly drive down global gold prices. But analysts said that behind the scenes, those objections may be starting to weaken. Initially, economists expect the IMF to sell gold worth only around $1.5 billion to $3.0 billion, a figure to small to fan global inflation. ''It is just not enough for the Bundesbank to have any real worries about,'' said one analyst who asked not to be named. Second, central banks are gradually placing less importance on gold as the ultimate safe-haven investment. ''We see central banks more actively managing their gold reserves, just like their currency holdings,'' Wrzesniok-Rossbach said. The new German goverment has embraced the idea of gold sales with more enthusiasm than Helmut Kohl's administration, bringing additional pressure to bear on the Bundesbank. The August departure of Bundesbank President Hans Titemeyer, a staunch monetarist, could also mean a rethink. ''For gold sales, they may have to wait until Tietmeyer goes,'' said Ann Pettifor, who runs the UK arm of Jubilee 2000, a pressure group campaigning to cancel unpayable debts of the poorest nations. Although the Bundesbank itself could not block IMF gold sales, analysts say the central bank has been the linchpin of a group of national authorities opposed to gold sales that has included those of Italy, Austria and Switzerland. IMF rules say gold sales would need the backing of member countries holding 85 percent of the votes at the lending institution. Germany has a share slightly over six percent, but the four nations as a whole could muster 12 percent of the vote, which could enable them to block a gold sale if other nations abstain. ((Frankfurt Newsroom +49 69 756525, frankfurt.newsroom+reuters.com)) Copyright 1999 Reuters Limited.