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Let's see if I have this correct... two benevolent governments (the
Swiss & the English) make announcements, in advance, of their intended
gold sales, knowing full well it will mean their sales will then bring
into their respective government coffers less money.... these are the
same governments (all governments) which constantly look for new ways to
tax citizens to get more money into their coffers???
Would you agree this type of action by any government is a paradox which
would warrant raised antennae? Did the Japanese pre-announce the
purchase of Yen? Did Greenspan pre-announce the lowering of interest
rates? I do not think you will find many pre-announcements except those
that would benefit the government by doing so.
So what benefit could possibly be obtained by the British & Swiss from
selling their gold at lower gold prices? Could higher gold prices have
a more significant downside for them (or others)? That is the question.
---
Regards --- DS
TheGonch at MediaKat wrote:
>
> Two reasons for the BoE to make an announcement in advance of changing
> its policy towards gold reserves:
>
> It prevents insider trading, since the news is quickly made public;
>
> It reduces the tendancy to try to guess the BoE's intentions by
> monitoring their trading patterns.
>
> Regards
> DanG
--
Douglas
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