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-----Original Message-----
From: wayne martin <lninja@xxxxxxxxxxx>
Subject: Re: Time for Gold???
> ...Hi Dick & RT's,
SNIP
>Besides, shouldn't
>the member countries(with weaker currencies) of the EU be buying gold to
>offset the difference of their currency for the transition to the
>Euro?(I'm not sure... comments anyone) and that would also put pressure
>on the physical.
Well, most of the central banks around the world have been selling gold over
the past few years, and I think they will take advantage of any spike in the
price to continue to do so. Most central banks have come to the realization
that holding all of your reserves in the form of one asset (especially one
that has been falling in value...) isn't very smart. It's like an
individual investor having all of his money in one stock. They are selling
gold and buying things like foreign bonds, which at least pay interest. I
think this diversification plan has quite a ways to go until the selling is
complete.
As for certain countries buying gold to conform to the Euro currency
standards, I'm not sure. But I do know many European countries were SELLING
gold to get their books in shape for entrance in 1997 and 1998.
Bruce
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