Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Alex who wrote (33457)	5/8/1999 8:36:00 AM
From: lorne	Read Replies (1) \| Respond to of 116972

Hi Alex. >>>>" announcement from the Treasury that it will be ditching more than half of Britain's gold reserves over the next five years seems to be the final nail in the coffin for gold as a monetary instrument. "<<<<< Lets say all the CBs jump on the band wagon in a final attempt to kill the gold industry and they succeed. I think there are a lot of people not just so called gold bugs who will be pi**ed off all those people who we consider anti gold people who make there living selling, leasing, shorting etc. are not going to be happy campers if they lose this source of easy money. And shouldn't they be called gold bugs as well. Not sure of definition of gold bug. Lorne

To: Alex who wrote (33457)	5/8/1999 4:29:00 PM
From: goldsnow	Respond to of 116972

No benefit to consumers, some in Asia World Gold Prices Plunge Friday, 7 May 1999 L O N D O N (AP) GOLD PRICES tumbled on world markets Friday after the British Treasury announced plans to sell more than half of its gold reserves in the years ahead. The treasury will auction off 125 tons, or 17 percent, of its total gold reserves by the end of next March. An additional 290 tons would be sold off over the "medium term," in 2001 and the following years. The gold is being sold as part of a plan to hold larger reserves of foreign currencies. "I think the rationale comes down to the fact that gold pays you a lot less interest than U.S. dollars, for example, do," said Philip Klapwijk, managing director of a London-based precious metals research firm, Gold Fields Mineral Services Ltd. Also, currencies have much lower storage costs than gold. Britain's government is the latest to announce plans to sell some of its gold reserves. Since 1990, central banks in the Netherlands, Austria, Belgium, Argentina and Australia have sold some of their holdings. Overall, the British Treasury's plan would account for 58 percent of its current gold reserves, which currently total 715 tons worth more than $6 billion. The first 125 tons - equal to about 5 percent of the world's total annual gold production - is to be sold at auctions every other month starting in July. The surprise announcement sent prices sliding more than 2 percent, as traders in key gold markets such as Britain, Switzerland and South Africa rushed to unload their holdings of the metal. In London, gold futures prices fell to $282.25 an ounce, down about $6, after sliding as low as $279.60. Later, on the New York Mercantile Exchange, gold fell $6.80 to $282.90 an ounce. The metal, which peaked at $875 a troy ounce in January 1980, has not broken above $300 this year. Shares of gold mining companies also fell sharply in Friday's stock trading. Consumers may benefit from falling gold prices, but shoppers in developed countries will likely see little benefit, said Klapwijk. That's because retail prices for gold are typically marked up 300 percent or more from the price of the raw metal. The effect of Friday's drop in price will therefore be greatly diluted for buyers of jewelry and gold watches, Klapwijk said. Consumers in Asia and the Middle East, where gold jewelry tends to be less well refined, may see a bigger savings. Gold producers with large, unhedged inventories are the main losers from Friday's developments. Their holdings will be worth less, and their ability to borrow funds with the gold as collateral will suffer. In Friday's trading on the New York Stock Exchange, mining company stocks dominated the list of major decliners: No. 2 U.S. producer Barrick Gold fell $2.75, or about 12 percent, to $20.50; Newmont Mining fell 3.31 1/4, or nearly 13 percent, to $23; and Placer Dome fell $2.43 3/4, or more than 15 percent, to $13.18 3/4.