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Mix-Ansicht- James TURK erläutert alte (unwichtige) und neue (brisante) Meldungen zu GOLD - RK, 14.10.2003, 19:59
James TURK erläutert alte (unwichtige) und neue (brisante) Meldungen zu GOLD
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GoldMoney Alert
13 October 2003
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Ignore the Old News; Focus on the New News
There is a lot of old news in the following bulletin from Germany today:
FRANKFURT, Oct 13 (Reuters) - The Bundesbank is considering selling 400 to 600 tonnes of gold between late next year and 2009 as part of a new gold agreement, Germany's Boersen Zeitung newspaper reported on Monday.
There's nothing new here except the following tidbit from the release:
It said one of Welteke's preferences would be to use the gold sales to fund education and research.
It is laughable to think that this reason explains why the Bundesbank proposes selling gold. The dishoarding of gold bullion by central banks is inevitably presented in terms of altruistic purposes. The reason is obvious - in today's climate of 'political correctness', the altruistic purpose to which the proceeds are to be put will supposedly help deflect the criticism central banks endure every time they propose selling off a country's crown jewels.
Anyway, it's old news; so don't let it scare you out of your gold, or stop you from continuing to accumulate gold at current prices, which represent exceptionally good value. The central banks are always huffing and puffing. In fact, I first addressed this 'news' over 1½ years ago, and nothing has changed since then. See: www.fgmr.com/cbpoppycock.htm
Of greater interest to me is the following news story from the Daily Telegraph newspaper in the UK, which was just released:
Russia to price oil in euros in snub to US
by Ambrose Evans-Pritchard in Brussels
Russia is to start pricing its huge oil and gas exports in euros instead of dollars as part of a strategic shift to forge closer ties with the European Union...German officials said Chancellor Gerhard Schroder secured agreement for the change-over on oil pricing from Vladimir Putin, the prime minister, while on a trip to Russia this week.
After discussing the change-over to euros from dollars, this report from the Telegraph then adds the following headline:
Middle East may follow lead of Russia's changeover to oil pricing in Euro
A switch to euro invoicing would not affect the long-term price of oil but it could encourage Middle Eastern exporters to follow suit and have a powerful effect on market psychology at a time when the dollar is already under intense pressure. Russia boasts the world's biggest natural gas reserves and is the number two oil exporter after Saudi Arabia...Oil is seen as so central to the global power structure that the choice of currency used for pricing has acquired almost totemic significance. The switch from pounds to dollars after the Second World War has come to symbolise sterling's demise as a world reserve currency. If the dollar were ever displaced by the euro, it would lose the enormous freedom it now enjoys in running macro-economic policy.
The dollar would also lose a lot more. It would lose the demand arising from countless purchases of crude oil now made in dollars. The British pound never recovered from the switch in oil pricing to US dollars. In fact, who except British newspapers and those with memories of the British colonial empire still refer to the pound as 'sterling'? It's purchasing power is so diminished from the high standard established for it when Sir Issac Newton put Britain on the classical gold standard in the early 18th century that it is a farce to today apply the adjective 'sterling' to it.
Britain abandoned gold, and the oil exporters eventually abandoned the pound. The US has abandoned gold, so it seems that the dollar will in time follow in the pounds footsteps to become a minor player in the arena of global finance. But before you go out and purchase the euro, think about accumulating gold instead.
There is one last piece of new news to which I would like to draw to your attention. Much has been made over the past several days about the open interest in gold on Comex, and much of what you will read - like much of what I have read on this subject - is way off the mark. I was therefore very pleased to read at www.lemetropolecafe.com an exceptional report by Dan Norcini, a professional commodity trader based in Houston. He gets it right in "Portrait of a Commercial Signal Failure".
I recommend that you read and study this article. I completely agree with his conclusion that"the big commercials are on the wrong side of the market and [will be] forced to run just like others" to cover their shorts.
If you are not a subscriber to the 'café', take out a subscription. Just this one article is well worth the cost of an annual subscription.
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