Forum Archive Index - February 2004

["G Stolwyk" <stolwyk@wave.co.nz>]

Extract from the "Gold Economy Report:

"Today, the leasing goes on (referring to gold leasing-GS), as evidenced by lower lease rates than ever, but according to Veneroso and other analysts the central banks must be running low on gold.

Some estimate that as much as 75% of the publicly listed gold holdings on the books of central banks is long gone, balanced by unreported cash-positions purchased from the bullion banks during the bailouts in 1999 and 2001.

The central banks and the bullion banks are trapped. If
they stop leasing gold into the market the price will
skyrocket, destabilizing their efforts to prevent global
deflation through expansion of the paper money supply.

 

If they keep lending gold into the market they will
eventually run out of gold to lend. It appears that the
powers that be have chosen plan B.

The World Gold Council estimates that the official
sector gold is enough to continue lending at current
rates for a decade or more.

 

Veneroso estimates that the actual physical gold in the official sector is much lower and will only last a few years at current rates of lending.

Eventually the central banks are going to run out of
ammunition and the gold price will burst out of their
control like a dam breaking".