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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Bill Murphy who wrote (6029)	5/16/1999 7:48:00 PM
From: lorne	Read Replies (2) \| Respond to of 80898

Hi Bill. Found this on Gold Forum think you will like the way this person thinks. very interesting. Central Bankers Crucify THEMSELVES! (KeyserSoze)May 16, 17:46 With all the recent banter about who is selling and who is buying gold, one of my long past posts leapt to mind- I am very indebted to Schweitzer for his Gold Forum posting of "GOLD HEDGING IS INJURIOUS TO ALL... and highly risky to boot" - Its contents put into words an idea that had been running through the windmills of my mind for some time. I always suspected gold hedging fostered and facilitated by imprudent Central Bankers, and executed by gold mining companies was an extremely risky business - and definitely not in the best interest of the shareholders of gold mining firms, in addition to being onerously detrimental to the Central Bankers THEMSELVES in the long run. Consequently, Schweitzer's posting helped me to clarify and support my thoughts. In this regard I would like to take Schweitzer's theme one step further. What is the monetary loss associated with the ill-practice of selling gold forward? And who suffers these losses? Let's just look at the real losses incurred since the beginning of 1996. From January of that year gold fell relentlessly from $440 to a recent $290 per ounce. This represents a 34% decline in value. Now what entity in the world took the biggest hit in losing $150 per ounce? ...SURPRISE! SURPRISE! The wily Central Bankers themselves! The world's total holdings of above ground gold is approximately 120,000 tonnes. Several reliable sources state Central Banks own about 30% of the total - which makes Central Bank gold stash 36,000 tonnes of the yellow metal. Through Central Bankers' gold leasing habits, and gold producers selling forward, gold's price subsequently plummeted 34% - thus diminishing the value of Central Banks' gold reserves by a whopping $174 BILLION. Now I implore any intelligent and reasonable person to answer whether Central Bankers can defend their absurd and nonsensical practice of aiding and abetting gold mining companies in the very questionably dubious practice of forward sales gold hedges. With the IMF going begging for funds, and mass starvation painfully visible in many parts of the third world, HOW ON EARTH CAN CENTRAL BANKERS AND MINING COMPANIES SQUANDER $174 BILLION IN THE LAST 34 MONTHS?! Indeed, how can we allow them to continue along this pernicious and reckless path? This is much more than gross malfeasance. More than reckless disregard for Fiduciary responsibility. It is downright CRIMMINAL… and should be rigorously investigated by a Kenneth Starr type, an Independent Counsel - examining everyone's "stained dress." Central Banks and gold mining companies selling gold forward should be put under a microscope to determine the motivation of each - and to find out if they have any ulterior motives and/or financial benefits in perpetrating this CRIMMINAL ACT. But the horrific losses due to forward sales gold hedges do not stop there. How about the countless billions of losses sustained by many millions of gold mining company shareholders worldwide? The best way to estimate their draconian losses is to compare them to the steep slide in the XAU since January 1996. In early 1996 the XAU stood at about 150. During the succeeding 34 months the Gold & Silver Index of precious metals stocks was hammered down to 75 - representing a loss of 50%. WHO is principally to blame for this financial disaster (besides the culpable Central Bankers)? Why…, none other than the Board of Directors of a few unscrupulous major gold producers! What possible sound business objective could they have had in mind? Indeed, what secret agenda do they harbour? The ramifications of Central Banks and a few gold mining companies acting in cahoots have caused hundreds of billions of dollars in real losses to the unsuspecting and trustful investing public. Is it not already time for someone to be called to task? To see who should be accountable for these painful losses? If it is politically "incorrect" to open up this golden can of worms, then, at least issue an order to CEASE AND DESIST… before the Central Bankers allow its gold reserves to waste away, and cause gold mining companies to go broke. It bears repeating. The unsavory practice of some gold mining companies' forward gold sales (aided and abetted by greedy and imprudent Central Banks) has caused a gold reserves loss equivalent to $174 billion - and exactly 50% of the value of all gold mining shares. All during the last 34 months. How long can we put up with the blatant dearth and TOTAL DISREGARD of fiduciary responsibility by the Fed? Indeed, why should we endure more of this reckless financial behavior by the Board of Directors of some gold producers? Besides to your Congressman, drop a line to one of the only TV programs which will not shirk from its public duty to Crucify Central Bankers and their gold producing accomplices, who sell forward their precious production in a dangerously cavalier fashion: email your complaint to CROSSFIRE at: crossfire@cnn.com gold-eagle.com