Tuesday, November 15, 2005
Germany Plans Gold Sale
As the Russian central bank considers stocking gold, another european country plans to sell. "Speaking at a news conference to present the financial aspects of a new coalition agreement between the German conservatives and Steinbrueck's Social Democrats (SPD), he also said he was in talks with the Bundesbank about a sale of gold reserves to finance future investment projects."
"Steinbrueck confirmed reports on Friday that the government wants to sell part of the Bundesbank's roughly 3,433 tonnes of gold reserves and invest the proceeds in interest-bearing assets controlled by the bank."
"The interest would then be used to pay for research and development projects and would not flow into the federal budget. The Bundesbank has signalled in the past it would not accept such transfers to the budget."
"Steinbrueck confirmed reports on Friday that the government wants to sell part of the Bundesbank's roughly 3,433 tonnes of gold reserves and invest the proceeds in interest-bearing assets controlled by the bank."
"The interest would then be used to pay for research and development projects and would not flow into the federal budget. The Bundesbank has signalled in the past it would not accept such transfers to the budget."
# posted by Ben Jones @ 1:36 PM 
Comments:
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These last two posts are why I don't hold more gold than I do, percentage wise. Back when I was more active in this market, it seemed like everytime a situation arose that should push prices up, the market would head down and the media would blame central bank selling.
obiewan,
We all have to make that judgement call. The one hting I can say after following it for 20 plus years is that the is no telling where we go from here. In the long run, we all should have a good portion on hand.
With these two posts I hope it is clear how much central bank manipulation there is. By just making announcements they can shift markets.
There was a time when the old Soviet Union was the largest gold producer and they admitted they made more money from manipulating the futures market than selling the gold itself.
Personally, I think we'll see gold cheaper, then in a few years the US dollar will likely collapse. Good luck and thanks for writing.
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We all have to make that judgement call. The one hting I can say after following it for 20 plus years is that the is no telling where we go from here. In the long run, we all should have a good portion on hand.
With these two posts I hope it is clear how much central bank manipulation there is. By just making announcements they can shift markets.
There was a time when the old Soviet Union was the largest gold producer and they admitted they made more money from manipulating the futures market than selling the gold itself.
Personally, I think we'll see gold cheaper, then in a few years the US dollar will likely collapse. Good luck and thanks for writing.
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