bundesbank gives gold buy signal!!

  1. 12,907 Posts.
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    10:14p ET Monday, October 13, 2003


    Dear Friend of GATA and Gold:


    The moon, stars, planets, and Bundesbank seem to be
    aligning favorably for the gold price tonight.


    There's this report at MineWeb, "Gold Still Primed for
    $400/oz":


    http://www.mips1.net/mggold.nsf/Current/4225685F0043D1B242256DBE005AD3
    AA?OpenDocument


    It's also near the top of the MineWeb home page at
    this hour:


    http://www.mineweb.com/


    Gold trader Jim Sinclair has two timely essays,
    "Time to Get Positioned" and "The Fuse is Burning;
    Can $400 Gold Be Far Off?" You can find them at
    his home page:


    http://www.jsmineset.com/


    And now Ernst Welteke, president of the Bundesbank,
    has given another interview musing about selling the
    bank's gold reserves, which happens whenever the
    central bankers are nervous that the gold price is
    escaping. A Reuters story about that interview is
    appended.


    Keep in mind that when central bankers talk about
    selling gold, they usually mean writing off as sold
    their leased gold, gold that is long out of the
    vault and already sold into the market and a
    dangerous liability for the bullion banks that
    borrowed it. Such "sales" don't add to the gold
    supply in the market; they help avert a short squeeze
    by expropriating national assets in favor of
    influential private interests -- interests that tend
    to employ central bankers before and after their
    careers with the central banks.


    CHRIS POWELL, Secretary/Treasurer
    Gold Anti-Trust Action Committee Inc.


    * * *


    Buba eyes 400-600 tonne gold sale in new pact, paper says


    http://biz.yahoo.com/rm/031013/minerals_gold_bundesbank_2.html


    FRANKFURT, Oct. 13 (Reuters) -- The Bundesbank is
    considering selling 400 to 600 tonnes of gold between late
    next year and 2009 as part of a new gold agreement,
    Germany's Boersen Zeitung newspaper reported on Monday.

    The paper, citing "informed financial circles," said any sale
    would take account of market conditions. As a precondition,
    current law would need to be changed to allow proceeds from
    any sales to be invested in interest-bearing securities, the
    paper said in an article released in advance of publication on
    Tuesday.


    Speaking to the paper, Bundesbank President Ernst Welteke
    declined to comment on details of any deal ahead of
    discussions in the spring among central banks to renew a
    gold sale agreement. The current agreement expires next
    September.


    Boersen Zeitung said its sources assumed that a new
    agreement would increase gold sales by a maximum of
    10-15 percent over the current one, which caps total
    sales at 2,000 tonnes over the five-year life of the
    agreement, or about 400 tonnes per year.


    Good demand for gold meant the gold market could take
    increased sales in its stride, the paper added.


    The Bundesbank was unavailable to comment on Monday
    on the Boersen Zeitung story.


    Dutch central bank governor Nout Wellink said last month
    central bankers had briefly discussed gold sales on the
    margins of a meeting of world financial officials in Dubai in
    September and that they were unlikely to fundamentally
    change their approach to sales in any new agreement next
    year.


    The Boersen Zeitung said the Bundesbank was looking at
    options for managing the proceeds from any future gold
    sales, which could bring in over four billion euros given a
    favourable gold price.


    "Nothing has been decided by the board," the paper quoted
    Welteke as saying. It said one of Welteke's preferences
    would be to use the gold sales to fund education and research.


    Welteke has already said that proceeds from gold sales
    cannot be used to finance government deficits. The Bundesbank
    is understood to hold around 3,500 tonnes of gold.
 
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