... was signed by the Chairman & CEO's ... ... of 6 out of the top 7 GOLD mining companies ... !!!
The ONLY one missing was BARRICK gold ... !!!
NOW ... ... obviously the ONLY reason that "Mr. Munk" ... ... did not sign "THE LETTER" ... ... was because he was at one of Barrick's mines ... ... with his pick & shovel ... ... trying to help the GOLD industry's employees ... ... and ... ... due to laboring for such a noble cause ... ... he couldn't be disturbed ... !!!
Certainly ... ... no one should think that because ... ... Barrick is THE largest HEDGER ... ... "Mr. MUNK" already KNOWS the answer ... ... to the question posed by the other CEO's ... !!!
And surely ... ... no one would think that "Mr. Munk" ... ... was "out there" using Barrick's "picks & shovels" ... ... to BURY the GOLD industry ... ... instead of helping them dig out some profits ... !!!
"The British public opposes by a margin of five to two the government�s plan to sell more than half of Britain�s gold reserves, while by a margin of more than two to one, the U.S. public opposes the Clinton Administration�s support for a proposal that the IMF should sell a portion of its gold reserves, according to public opinion surveys carried out on behalf of the World Gold Council."
Central bank and government sales are affected by public opinion. So, with 8000 layoffs planned by mining companies and 20,000 protesting the UK sale, I don't anticipate elected officials doing something against the political winds.
The bottom - you bet. Buy low, sell high. I believe Newmont will be at 18 1/2 by Friday and back to 19 in the next 2 weeks.
Wednesday July-7-99 Bank of England bids gold goodbye By Stephen Wyatt The Bank of England last night kicked off its gold sales program and auctioned 25 tonnes of gold, the first in a series of auctions which will result in the liquidation of a total of 415 tonnes of gold or over half of Britain's gold reserves.The gold fetched $US261.20/oz ($393.20), virtually in line with the market at the time. If there was any surprise in the gold market it was that the gold price did not rise more than it did prior to the auction."Most expected at least a $US5/oz rally. This is very disappointing. The market might be short but the shorts look comfortable," said Mr Kamal Naqvi, precious metals analyst with the Macquarie Bank group.Gold traders said that 25 tonnes is not a lot of gold and that it would be unlikely that a sale of this size could knock the gold market sharply lower, especially when the bulk of the negative impact of the Bank of England sale had already been priced into the market.When the Bank of England announced in early May it would be selling 415 tonnes of gold by auction, the gold market fell from US$288/oz to a 20 year low of US$258/oz.Gold producers, however, have been aggressively opposed to the sale. The World Gold Council, the body funded by gold producers worldwide, has instigated a high-profile public relations campaign against the UK sale and has submitted a petition against the sale to the UK Chancellor of the Exchequer, Mr Gordon Brown.The Bank of England sale has attracted massive interest. This is partly because it is the Bank of England selling gold. After all it was the Bank of England, when Isaac Newton (the apple man) was Master of the Mint in 1717, that introduced the gold standard.For over 250 years gold played a central role in the international economy and was the primary backing of the currencies of nation states. In the 1960's gold was still the primary reserve asset of many of the world's major central banks and together they owned over 60 percent of all the gold ever mined.And here is the problem. The last 40 years has been a period when central banks had to divest themselves of gold. Changes in the global financial system, including the end of the gold standard in the US in 1971, have increasingly marginalised gold as a financial asset, argues Mr Andy Smith, precious metals analsyst with Mitsui Busan in London.Today, central banks still hold a third of the gold ever mined or about 30,000 tonnes. The market fears central bank sales will continue to drive the gold price lower. The Bank of England sale was another move to liquidate gold, but it was by a respected financial institution. It follows sales by Canada (622 tonnes since 1979), Belgium (1,000 tonnes since 1988), the Netherlands (700 tonnes since 1992), Australia (167 tonnes in 1997) and Argentina (124 tonnes in 1997). And proposed sales of 300 tonnes by the International Monetary Fund and 1,300 tonnes by Switzerland - half its gold reserves. http://www.afr.com.au/content/990707/news/news6.html
Bill Fleckenstein on gold In the not-so-precious metals department... The Bank of England tender happened early this morning and there were apparently bids for five times as much metal as was sold. Within an hour after the sale, gold was trading down $3, and within a couple hours it was down as much as $8. It appears that details were to be released as to what the unfilled bids were, but they were delayed in coming out. That may have had something to do with the price decline. I guess the assumption is that maybe the bids were way below the market. In any case, gold bulls cannot be happy with today's action, as bullion declined $6.80. I made the point that I thought the metal would rally coming out of this, and maybe it will still. This is certainly not what I expected to see. If it turns out there was some confusion and it caused a sell-off for a day or so; that's one thing. But if gold doesn't immediately start higher in the next 24 hours I would think there's some chance we're going to see even lower prices. Of course, that development smacked the gold stock index for about 6 percent.