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To: Bonnie Bear who wrote (39355)	5/7/1999 7:35:00 AM
From: Lucretius	Read Replies (1) \| Respond to of 86076

HO HO HO.. this is no shock.... I shoulda known.... I'm no grassy knoll guy but the timing of this is a little suspicious.... I think some hedgies and bullion banks are REAL worried about a gold breakout and whispered into the correct ears... I would buy gold shares on this weakness if I were you... The kiddies are tryin to hold it down.. they will fail. I will be selling the pound to buy yen if the Brits are stupid enough to sell their gold.. I don't wnat to hold their currency. Friday May 7, 6:41 am Eastern Time Gold price tumbles after UK says to sell reserves By Kenneth Barry HONG KONG, May 7 (Reuters) - Gold fell $4 an ounce on Friday after Britain announced plans to sell 415 tonnes of the yellow metal, or more than half of its holdings. The announcement was the latest instance of a central bank or official body planning to sell gold and sending the price lower as the market anticipated increased supply. Gold bullion ended at $284.70/285.20 per ounce in Hong Kong compared to New York's previous close at $289.10/60 on Thursday. Britain said it intended to sell 125 tonnes in five auctions in fiscal 1999/2000, with the first on July 6. The British Treasury said it ultimately aimed to reduce its gold holdings to 300 tonnes from 715 tonnes. The decision reflected gold's diminished role as a monetary reserve at a time when central banks are seeking investments that earn a better return. The gradual worldwide decline in inflation has also been seen by some as reducing central banks' need to hold the yellow metal as a store of value. ''This will hurt a lot. It is a very negative message,'' said a bullion trader who asked not to be identified. Another trader noted that sales from Switzerland and the International Monetary Fund would most likely follow Britain's sales. ''There will be a lot of gold floating about. It is quite depressing,'' the trader said. The price could fall lower. U.S. investment funds, which have been holding big short, or selling, positions, were likely to push gold lower, the trader said. In Asia, where most central banks in less developed countries hold less gold than developed countries, official gold sales were not so likely, one trader said. ''I don't think the possibility is as big in Asia as it is in Europe. But I think they (Asian central banks) will stop buying gold,'' he said. ''Gold's role as a reserve currency is diminishing.'' A major sale by Australia's central bank in 1997 was followed by other central bank sales and contributed to a steady price decline for gold. Switzerland's central bank has announced plans to sell about half its gold reserves and the IMF will consider a plan to sell some of its reserves to fund debt relief for poor nations. Spot silver also fell, ending at US$5.30/33 an ounce after closing in New York at US$5.37/40 on Thursday. Local tael gold ended HK$28 down at HK$2,632. --------------------------------------------------------------------------------