Julian Phillips: Central banks seem done selling gold

5p ET Friday, December 5, 2008

Dear Friend of GATA and Gold:

Updating gold sales under the Central Bank Gold Agreement, Gold Forecaster editor Julian D.W. Phillips concludes that gold sales are running far below authorized levels and that there is little likelihood of additional sales of any size. Phillips adds that even if the International Monetary Fund should sell any of the gold it long has been threatening to sell -- and from its correspondence with the IMF, GATA doubts that the IMF really has any gold at all, has anything more than a tenuous claim on the gold reserves of some of its members -- an Asian central bank well might buy all IMF gold offered for sale, diverting the gold from the market. That is what Nobel Prize-winning economist Robert Mundell, an adviser to the Chinese government, says China should do (http://www.gata.org/node/6792). You can find Phillips' analysis, headlined "Will Central Banks Sell Out or Are They Sold Out?," at GoldSeek here:

http://news.goldseek.com/GoldForecaster/1228503600.php

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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