Twelve European central banks Renew Gold Pact -
Gold closes off session lows as central banks
limit sales - UPDATE
SAN FRANCISCO (AFX) - Gold futures fell Monday after
rising nearly 9 usd an ounce in the previous session,
but prices closed well off session lows following a
pledge by certain European central banks to renew a
pact that limits Gold sales.
Gold for April delivery closed at 400.90 usd an ounce
on the New York Mercantile Exchange, down 70 cents
for the session, but above the intraday low
of 399.20 usd.
The contract climbed 2.2 pct on Friday.
Twelve European central banks said they will renew
their agreement to limit gold sales to 500 metric
tons per year for the next five years.
The agreement commences on September 27, when a
previous pact, known as the Washington Agreement,
expires.
The pledge "was not motivated by any concern from
Gold producers, but rather by the central banks'
self interest in preserving the value of Gold,"
Alberto Arias, an analyst at Goldman Sachs, said
in a research note Monday.
The World Gold Council said the decision "reflects
the central banks' understanding of the Gold market".
The council applauded the move by the banks to
identify Gold as an important element of global
monetary reserves. GOLD THE ONLY REAL MONEY
The UK government has said it will not participate
in the pact, though it has no plans to sell Gold
from reserves.
The market was generally expecting the agreement
to entail 550 metric tons per annum, so "only 500"
is actually bullish, said John Vail, a senior
strategist at Mizuho Securities USA.
The previous pact, however, had a smaller limit
of 400 metric tons.
While Germany's Bundesbank is part of the deal,
it may not sell any gold from its reserves
"because the majority of (its) board is not
supportive of selling any," said Vail.
[They act with common sense - don't want to be
lycnched by the peoples mob later!]
Though the pact will not take effect until September,
the "perception" of agreement has provided some
market support, he said.
GREAT STABILITY PACT TO GOLD -
BANKSTER CABALS TO BE LEFT ALONE
For shorter-term direction, the metals market
continues to take its directional cue from
the currency exchange.
The US dollar hit a five-month high against the
Japanese yen Monday, amid bets Japanese authorities
will continue to defend their export market by
buying greenbacks?
Weak US employment data --
a much smaller-than-expected 21,000 rise in nonfarm
payrolls for February --
weighed on the dollar Friday, and in turn
sent Gold higher.
--
A new dollar free of the obligations of the old dollar
could then be launched --
What If US Reneges on its Dollar Obligations?
This isn't idle doomsday speculation, because
the American budget and current account deficits
cannot keep ballooning indefinitely
By ANTHONY ROWLEY
IN TOKYO
JAPANESE Finance Minister Sadakazu Tanigaki's suggestion
that Japan might consider diversifying its massive
foreign exchange reserves provoked speculation about
possible dollar dumping on a huge scale by Asian
governments and also set the gold market alight briefly.
http://business-times.asia1.com.sg/mnt/media/...3/ardollar-211336.jpg
Grim for the greenback: as the US economy's ability
to absorb Asia's surplus production is not infinite, a
two-tier exchange rate
***- 'new' and 'old' dollars -*** may soon be needed
But it has also set some people thinking about what
might happen if the United States were forced to
renege on its huge overseas dollar obligations at
some point in time.
This is more than idle doomsday speculation because
there are historical precedents.
It is true that there has long been speculation that
the massive overhang of dollars held overseas could
one day come back to haunt the US, and that the tail
might start wagging the proverbial dog if external
factors began to dictate domestic monetary policy.
When the dollar-denominated Eurobond market (not to be
confused with euro-denominated bonds) was launched back
in the 1960s, there were fears of a massive migration of
dollars overseas and of possible consequent dollar
dumping.
From time to time, too, economists have talked about
what would happen if Middle Eastern sheikhs switched out
of pricing oil in dollars (which Saddam Hussein had the
temerity to consider doing), if Malaysia and others
switched out of dollars and into gold dinars, or if the
euro were to supplant the dollar as the international
reserve and transaction currency of choice.
But the dollar has remained largely unchallenged -
until now, that is.
What is new is that the Bush administration is creating
the greatest budget and current account deficit of all time.
The total level of outstanding US government debt last
month passed the US$7 trillion mark for the first
time ever (beating even super-debtor Japan).
At over 5 per cent of GDP, the US external deficit is no
slouch either when it comes to achieving a blow-out.
Asian central banks that own a collective US$2 trillion
of official reserves - mainly in the form of dollars -
are plainly aware of the fact that the twin US deficits
are yawning ever wider, and that the dollar correction
needed to close the external deficit could expose them
to major losses on their dollar holdings.
But the dilemma that many of them (critically, Japan and China)
face is that for as long as they insist on buying economic
recovery through exports, they have to buy dollars too
in order to stem appreciation of their currencies.
This situation will not continue indefinitely, however,
because the ability of the US economy to absorb Asia's
(and the world's) surplus production - surplus because
it exceeds current domestic demand by such a large margin -
is not infinite.
The day of reckoning could come a lot faster than many
people expect as the US presidential election approaches
in November, and as Democratic candidates John Kerry and
John Edwards vie with one another to establish their
protectionist credentials.
Once exporting to the US ceases to be the easiest game
in town for both Japan and China, they may well decide
to unwind some of their huge holdings of US Treasury
securities - which, at around US$1 trillion in aggregate,
account for a large part of the total amount of US government
debt held overseas.
If either (or both) of these countries begins edging towards
the exit on US dollar holdings, other central banks might
try to beat them to the door.
A general dumping of US dollars could then ensue.
It is not only foreign central bank holdings of dollars
that are vulnerable.
Around 50 per cent of the total US dollar notes in
circulation (around US$1 trillion) is reliably estimated
to be held offshore (in suitcases in Colombia, as one
Tokyo economist put it to this writer) and the potential
for at least some of these to be cashed in too is very real.
But whether a true cashing in would be possible in such
circumstances is open to debate.
About the only commodity that the US Treasury or Federal
Reserve could use in order to honour its nominal obligation
to dollar holders is gold, since the great bulk of US
official reserve assets is held in gold form rather than
in non-dollar currencies.
Having closed its gold window back at the start of the 1970s,
however, leading to a massive official devaluation of gold,
the US is unlikely to wish to dish out gold freely
at this point.
A more likely scenario, as one veteran monetary affairs
expert in London put it, is of the US possibly freezing
its overseas liabilities, or holding them in a special
account. In such circumstances, he noted the US would
present this as being in the interests of the world economy
and of preserving the US dollar as an international currency.
You would move to a two-tier exchange rate -
- old dollars and new dollars -
and then you would have endless meetings of finance ministers,
central bankers and the International Monetary Fund (IMF)
about setting up a special account.
But nobody would want SDRs (special drawing rights) any
longer in exchange for unwanted dollars.
The only way out, this source speculated, would be either
for the US to force Asia and Europe by political muscle to
lend the US further massive amounts officially or to limit
the amounts and time over which holders of old dollar balances,
especially central banks in Asia, could actually spend their
dollar balances. Probably these would continue to attract
interest but could not be actually spent.
A new dollar free of the obligations of the old dollar
could then be launched.
If Asian central banks and others are aware of such dangers,
they are showing little sign of it as yet.
The writer is BT's Tokyo correspondent
http://business-times.asia1.com.sg/story/0,4567,109769,00.html
http://www.tfc-charts2.w2d.com/charts/cdl/CPW.GIF
http://news.tradingcharts.com/futures/9/0/53833609.html
Copper is very strong - all base metals follow
The Mother GOLD or is a scout frontrunner -
http://charts3.barchart.com/...stk&sym=HGK4&data=E&code=BSTK&evnt=adv
DXY0 - U.S. DOLLAR INDEX Cash (FINEX) making a short term
correction on the down slide,,,,
http://charts3.barchart.com/...evnt=adv&grid=Y&code=BSTK&org=stk&fix=
http://charts3.barchart.com/...stk&sym=DXY0&data=E&code=BSTK&evnt=adv
GCJ4 - GOLD April 2004 (COMEX) the bull correction makes
another buy opportunity, before the 1980 repeat rally,,,
http://charts3.barchart.com/custom/stocks/2068.gif
Platinum is $894.00/oz scout frontrunner for Gold $402.10
EGX CandleStick Analysis - Very Bullish
EGX.C Analysis
Stock Technical Analysis
http://www.stockta.com/cgi-bin/...,0.12,3,0.14,6,0.15,2,0.15,4&trend=
EGX CandleStick Analysis - Very Bullish
Date Candle
Mar-04-2004 Homing Pigeon
Mar-03-2004 Bullish Harami
Mar-02-2004 Homing Pigeon
Mar-01-2004 Homing Pigeon
Feb-27-2004 Homing Pigeon
It's hard to find a $200 /ounce low cost Gold Producer!
Highlights from Q3, 2003 earning report ( in US dollars )
Amount of Gold produced was 8,596 ounces
Amount of Gold sold was 7,443 ounces
Average production cost for the 9 months was $246.00/oz
(incl. cost for expansion of heap leach pads etc.)
Deduct the expansion cost of the heap leach pads to expand the EGX
Gold production and You will find a production cost of about $200.00 per ounce
Gold was sold at an average price of $362.89/oz
Revenue was $2,701,000
Net profit was $169,000 (only from 3rd Q3, 2003 earning report)
Plus the Gold 1153 ounce produced - and to be sold at a higher price
Eurasia Gold Corp.
2215 - 120 Adelaide St W
Toronto ON Canada M5H 1T1
Phone: 1(416) 504-2899
Fax: 1(416) 504-2729
Email: eurasia@eurasiagold.com
Website: http://www.eurasiagold.com
The Eurasia Gold Corp. shares
EURASIA GOLD CORP. = EGX:TSX-V @ The Canadian Stock Exchange
http://www.tse.com/...dPrices&Language=en&QuoteSymbol_1=egx&x=21&y=11
EURASIA GOLD CORP. = EAGCF:OTC:BB @ Nasdaq
http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=eagcf
Eurasia Gold Corp.
2215 - 120 Adelaide St W
Toronto ON Canada M5H 1T1
Phone: 1(416) 504-2899
Fax: 1(416) 504-2729
Email: eurasia@eurasiagold.com
Website: http://www.eurasiagold.com
Other than EGX, I don't think there is one,
Get on the EGX / EAGCF Gold-train, imo
Best regards, MfG
Gold closes off session lows as central banks
limit sales - UPDATE
SAN FRANCISCO (AFX) - Gold futures fell Monday after
rising nearly 9 usd an ounce in the previous session,
but prices closed well off session lows following a
pledge by certain European central banks to renew a
pact that limits Gold sales.
Gold for April delivery closed at 400.90 usd an ounce
on the New York Mercantile Exchange, down 70 cents
for the session, but above the intraday low
of 399.20 usd.
The contract climbed 2.2 pct on Friday.
Twelve European central banks said they will renew
their agreement to limit gold sales to 500 metric
tons per year for the next five years.
The agreement commences on September 27, when a
previous pact, known as the Washington Agreement,
expires.
The pledge "was not motivated by any concern from
Gold producers, but rather by the central banks'
self interest in preserving the value of Gold,"
Alberto Arias, an analyst at Goldman Sachs, said
in a research note Monday.
The World Gold Council said the decision "reflects
the central banks' understanding of the Gold market".
The council applauded the move by the banks to
identify Gold as an important element of global
monetary reserves. GOLD THE ONLY REAL MONEY
The UK government has said it will not participate
in the pact, though it has no plans to sell Gold
from reserves.
The market was generally expecting the agreement
to entail 550 metric tons per annum, so "only 500"
is actually bullish, said John Vail, a senior
strategist at Mizuho Securities USA.
The previous pact, however, had a smaller limit
of 400 metric tons.
While Germany's Bundesbank is part of the deal,
it may not sell any gold from its reserves
"because the majority of (its) board is not
supportive of selling any," said Vail.
[They act with common sense - don't want to be
lycnched by the peoples mob later!]
Though the pact will not take effect until September,
the "perception" of agreement has provided some
market support, he said.
GREAT STABILITY PACT TO GOLD -
BANKSTER CABALS TO BE LEFT ALONE
For shorter-term direction, the metals market
continues to take its directional cue from
the currency exchange.
The US dollar hit a five-month high against the
Japanese yen Monday, amid bets Japanese authorities
will continue to defend their export market by
buying greenbacks?
Weak US employment data --
a much smaller-than-expected 21,000 rise in nonfarm
payrolls for February --
weighed on the dollar Friday, and in turn
sent Gold higher.
--
A new dollar free of the obligations of the old dollar
could then be launched --
What If US Reneges on its Dollar Obligations?
This isn't idle doomsday speculation, because
the American budget and current account deficits
cannot keep ballooning indefinitely
By ANTHONY ROWLEY
IN TOKYO
JAPANESE Finance Minister Sadakazu Tanigaki's suggestion
that Japan might consider diversifying its massive
foreign exchange reserves provoked speculation about
possible dollar dumping on a huge scale by Asian
governments and also set the gold market alight briefly.
http://business-times.asia1.com.sg/mnt/media/...3/ardollar-211336.jpg
Grim for the greenback: as the US economy's ability
to absorb Asia's surplus production is not infinite, a
two-tier exchange rate
***- 'new' and 'old' dollars -*** may soon be needed
But it has also set some people thinking about what
might happen if the United States were forced to
renege on its huge overseas dollar obligations at
some point in time.
This is more than idle doomsday speculation because
there are historical precedents.
It is true that there has long been speculation that
the massive overhang of dollars held overseas could
one day come back to haunt the US, and that the tail
might start wagging the proverbial dog if external
factors began to dictate domestic monetary policy.
When the dollar-denominated Eurobond market (not to be
confused with euro-denominated bonds) was launched back
in the 1960s, there were fears of a massive migration of
dollars overseas and of possible consequent dollar
dumping.
From time to time, too, economists have talked about
what would happen if Middle Eastern sheikhs switched out
of pricing oil in dollars (which Saddam Hussein had the
temerity to consider doing), if Malaysia and others
switched out of dollars and into gold dinars, or if the
euro were to supplant the dollar as the international
reserve and transaction currency of choice.
But the dollar has remained largely unchallenged -
until now, that is.
What is new is that the Bush administration is creating
the greatest budget and current account deficit of all time.
The total level of outstanding US government debt last
month passed the US$7 trillion mark for the first
time ever (beating even super-debtor Japan).
At over 5 per cent of GDP, the US external deficit is no
slouch either when it comes to achieving a blow-out.
Asian central banks that own a collective US$2 trillion
of official reserves - mainly in the form of dollars -
are plainly aware of the fact that the twin US deficits
are yawning ever wider, and that the dollar correction
needed to close the external deficit could expose them
to major losses on their dollar holdings.
But the dilemma that many of them (critically, Japan and China)
face is that for as long as they insist on buying economic
recovery through exports, they have to buy dollars too
in order to stem appreciation of their currencies.
This situation will not continue indefinitely, however,
because the ability of the US economy to absorb Asia's
(and the world's) surplus production - surplus because
it exceeds current domestic demand by such a large margin -
is not infinite.
The day of reckoning could come a lot faster than many
people expect as the US presidential election approaches
in November, and as Democratic candidates John Kerry and
John Edwards vie with one another to establish their
protectionist credentials.
Once exporting to the US ceases to be the easiest game
in town for both Japan and China, they may well decide
to unwind some of their huge holdings of US Treasury
securities - which, at around US$1 trillion in aggregate,
account for a large part of the total amount of US government
debt held overseas.
If either (or both) of these countries begins edging towards
the exit on US dollar holdings, other central banks might
try to beat them to the door.
A general dumping of US dollars could then ensue.
It is not only foreign central bank holdings of dollars
that are vulnerable.
Around 50 per cent of the total US dollar notes in
circulation (around US$1 trillion) is reliably estimated
to be held offshore (in suitcases in Colombia, as one
Tokyo economist put it to this writer) and the potential
for at least some of these to be cashed in too is very real.
But whether a true cashing in would be possible in such
circumstances is open to debate.
About the only commodity that the US Treasury or Federal
Reserve could use in order to honour its nominal obligation
to dollar holders is gold, since the great bulk of US
official reserve assets is held in gold form rather than
in non-dollar currencies.
Having closed its gold window back at the start of the 1970s,
however, leading to a massive official devaluation of gold,
the US is unlikely to wish to dish out gold freely
at this point.
A more likely scenario, as one veteran monetary affairs
expert in London put it, is of the US possibly freezing
its overseas liabilities, or holding them in a special
account. In such circumstances, he noted the US would
present this as being in the interests of the world economy
and of preserving the US dollar as an international currency.
You would move to a two-tier exchange rate -
- old dollars and new dollars -
and then you would have endless meetings of finance ministers,
central bankers and the International Monetary Fund (IMF)
about setting up a special account.
But nobody would want SDRs (special drawing rights) any
longer in exchange for unwanted dollars.
The only way out, this source speculated, would be either
for the US to force Asia and Europe by political muscle to
lend the US further massive amounts officially or to limit
the amounts and time over which holders of old dollar balances,
especially central banks in Asia, could actually spend their
dollar balances. Probably these would continue to attract
interest but could not be actually spent.
A new dollar free of the obligations of the old dollar
could then be launched.
If Asian central banks and others are aware of such dangers,
they are showing little sign of it as yet.
The writer is BT's Tokyo correspondent
http://business-times.asia1.com.sg/story/0,4567,109769,00.html
http://www.tfc-charts2.w2d.com/charts/cdl/CPW.GIF
http://news.tradingcharts.com/futures/9/0/53833609.html
Copper is very strong - all base metals follow
The Mother GOLD or is a scout frontrunner -
http://charts3.barchart.com/...stk&sym=HGK4&data=E&code=BSTK&evnt=adv
DXY0 - U.S. DOLLAR INDEX Cash (FINEX) making a short term
correction on the down slide,,,,
http://charts3.barchart.com/...evnt=adv&grid=Y&code=BSTK&org=stk&fix=
http://charts3.barchart.com/...stk&sym=DXY0&data=E&code=BSTK&evnt=adv
GCJ4 - GOLD April 2004 (COMEX) the bull correction makes
another buy opportunity, before the 1980 repeat rally,,,
http://charts3.barchart.com/custom/stocks/2068.gif
Platinum is $894.00/oz scout frontrunner for Gold $402.10
EGX CandleStick Analysis - Very Bullish
EGX.C Analysis
Stock Technical Analysis
http://www.stockta.com/cgi-bin/...,0.12,3,0.14,6,0.15,2,0.15,4&trend=
EGX CandleStick Analysis - Very Bullish
Date Candle
Mar-04-2004 Homing Pigeon
Mar-03-2004 Bullish Harami
Mar-02-2004 Homing Pigeon
Mar-01-2004 Homing Pigeon
Feb-27-2004 Homing Pigeon
It's hard to find a $200 /ounce low cost Gold Producer!
Highlights from Q3, 2003 earning report ( in US dollars )
Amount of Gold produced was 8,596 ounces
Amount of Gold sold was 7,443 ounces
Average production cost for the 9 months was $246.00/oz
(incl. cost for expansion of heap leach pads etc.)
Deduct the expansion cost of the heap leach pads to expand the EGX
Gold production and You will find a production cost of about $200.00 per ounce
Gold was sold at an average price of $362.89/oz
Revenue was $2,701,000
Net profit was $169,000 (only from 3rd Q3, 2003 earning report)
Plus the Gold 1153 ounce produced - and to be sold at a higher price
Eurasia Gold Corp.
2215 - 120 Adelaide St W
Toronto ON Canada M5H 1T1
Phone: 1(416) 504-2899
Fax: 1(416) 504-2729
Email: eurasia@eurasiagold.com
Website: http://www.eurasiagold.com
The Eurasia Gold Corp. shares
EURASIA GOLD CORP. = EGX:TSX-V @ The Canadian Stock Exchange
http://www.tse.com/...dPrices&Language=en&QuoteSymbol_1=egx&x=21&y=11
EURASIA GOLD CORP. = EAGCF:OTC:BB @ Nasdaq
http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=eagcf
Eurasia Gold Corp.
2215 - 120 Adelaide St W
Toronto ON Canada M5H 1T1
Phone: 1(416) 504-2899
Fax: 1(416) 504-2729
Email: eurasia@eurasiagold.com
Website: http://www.eurasiagold.com
Other than EGX, I don't think there is one,
Get on the EGX / EAGCF Gold-train, imo
Best regards, MfG
