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>From: LePatron@xxxxxxxxxxxxxxxxxxx
>To: trdoptions@xxxxxxxxxxx
>Subject: BULLETIN !!! - GOLD UP $6 - NEWS OUT !!!
>Date: Sun, 26 Sep 1999 21:31:42 -0400
>
>Le Metropole members,
>
>Washington - Dow Jones - Sept 26
>
>Fifteen European central banks led by the European
>Central Bank Sunday pledged to not enter the market
>as a seller of gold with the exception of sales that
>have previously been decided...
>
>In a joint statement issued by the central banks, they
>said "gold will remain an important element of global
>monetary reserves."..
>
>The gold sales already decided will be achieved through
>a concerted program of sales over the next five years,
>said the banks...
>
>Annual sales won't exceed about 400 metric tons and
>total sales over the period won't exceed 2,000 tonnes..
>
>THE SIGNATORIES TO THE AGREEMENT HAVE ALSO AGREED NOT
>TO EXPAND THE GOLD LEASINGS AND THE USE OF GOLD
>FUTURES AND OPTIONS OVER THIS PERIOD...
>
>Switzerland and England are included...
>
>European Central Bank President Wim Duisenberg also
>said the central banks agreed to the 400 metric ton
>annual ceiling because it was an amount that wouldn't
>disturb the market and that he thought the market
>could absorb such a sale…....
>
>"The current situation is characterized by uncertainty
>an that uncertainty by itself led to a lot of volatility
>and a downward trend in the gold price." Duisenberg
>said...
>
>He said central banks want to see stability in the
>market, but he also said they're "not trying to
>prop up the gold market."..
>
>Nonetheless, Duisenberg indicated his expectations
>for a bullish reaction to the announcement: "I
>think the gold market will interpret the ceiling
>as being less than they feared...End
>
>At the moment December Comex gold is trading at
>$275.70 up $5.90 and has traded up to $277.
>
>This explains what I told you in the last Midas
>du Metropole about the scoop I received that some
>hedge funds had swiftly left for Switzerland this
>week to discuss the gold market. They MUST have
>known this was coming and, as I told you, are
>very concerned about finding the gold they need
>for their short positions - either for buy
>back or borrowing purposes.
>
>More on all this tomorrow in Midas. Stay tuned and
>be informed. A multi year bull market in gold is
>ahead of us. There is a lot of money on the table
>now.
>
>All the best,
>
>Bill Murphy
>Le Patron
>http://www.LeMetropoleCafe.com
>
>Hot off the wire services:
>
>Top Financial News Sun, 26 Sep 1999, 8:40pm EDT
>
>Duisenberg Says Europe's Central Banks Won't Add
>to Planned Gold Sales
>
>ByHellmuth Tromm
>
>European Central Banks Pledge to Limit Gold Sales
>(Update1) (Adds details throughout. GSEV for a
>special report on the IMF meetings.)
>
>Washington, Sept. 26 (Bloomberg) -- European Central
>Bank said they will limit the sale of gold in the
>coming five years, trying to bolster gold
>prices which have plunged by a third in the past
>three years.
>
>In a statement issued on behalf of the 11 euro
>region central banks, plus the Bank of England, the
>Swiss National Bank and the Swedish Riksbank,
>European Central Bank President Wim Duisenberg said
>central banks won't add to their already announced plans
>for limited gold sales. The banks together
>account for 50 percent of all official gold reserves,
>a Bank of England official said.
>
>Duisenberg said already decided gold sales will be
>achieved through a concerted program over the next
>five years, and annual sales won't exceed
>about 400 tons with total sales over the period not
>exceeding 2,000 tons. He stressed that they agreed
>gold will remain an important element of
>global monetary reserves.
>
>Most of the gold sales will be accounted for
>by U.K. and Swiss sales, with about 300 tons coming
>from other banks who have decided to sell but haven't
>yet announced their intentions, Duisenberg said.
>``The purpose of this action is to give certainty to
>the gold market,'' Duisenberg said. Central
>banks who hold ``a substantial part'' of their reserves
>in gold are also concerned about ``keeping the value
>of that gold where it is.''
>
>Fading Lustre
>
>Gold prices have dropped by a third in the past
>three years as central banks, including those of
>the U.K. and Switzerland, sold reserves and on
>traders' concern that other governments would
>also sell. The precious metal lost its shine as
>a hedge against inflation, and banks switched to other
>investments, such as government bonds that
>offer higher returns.
>
>Duisenberg added that the central banks also agreed
>not to expand their gold leasings and their use of
>gold futures and options over the five-year
>period. The agreement will be reviewed after five years.
>
>The European central banks' announcement comes after
>an agreement by the International Monetary Fund's
>policy-making Interim Committee agreed to
>revalue 14 million ounces of the fund's gold
>reserves to help finance a $40 billion debt-relief
>program for some of the world's poorest countries.
>
>The IMF gold, however, will be sold in off-market
>transactions designed to have minimal impact on
>gold prices, which have been falling, and to defuse
>protests from gold- producing countries, some
>of whom are meant to benefit from debt forgiveness
>in the Heavily Indebted Poor Countries initiative, or
>HIPC. HIPC is jointly run by the IMF and World Bank.
>
>IMF, US Gold
>
>IMF gold accounts for 10 percent of official gold
>reserves while the U.S., which opposes selling its own
>holdings, holds another 30 percent. ``We have indications
>that the U.S. is not changing its attitude,'' Duisenberg said,
>who added that the U.S. was ``involved'' in the
>European discussions.
>
>The European central bank president also said
>it was ``pure coincidence''that the European central banks' announcement
>came shortly after the IMF
>initiative was agreed. ``The only reason is that we
>were all together'' for the IMF and World Bank's
>annual meetings.End
>
>All the best,
>
>Bill Murphy
>Le Patron
>http://www.LeMetropoleCafe.com
>
>
>
>
>
>
>
>
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