Distinguish the big news from what''s not news at all

10:14p ET Monday, October 13, 2003

Dear Friend of GATA and Gold:

The moon, stars, planets, and Bundesbank seem to be
aligning favorably for the gold price tonight.

There's this report at MineWeb, quot;Gold Still Primed for
$400/ozquot;:

a href=http://www.mips1.net/mggold.nsf/Current/4225685F0043D1B242256DBE005AD3ht...
AA?OpenDocument

It's also near the top of the MineWeb home page at
this hour:

a href=http://www.mineweb.com/http://www.mineweb.com//a

Gold trader Jim Sinclair has two timely essays,
quot;Time to Get Positionedquot; and quot;The Fuse is Burning;
Can $400 Gold Be Far Off?quot; You can find them at
his home page:

a href=http://www.jsmineset.com/http://www.jsmineset.com//a

And now Ernst Welteke, president of the Bundesbank,
has given another interview musing about selling the
bank's gold reserves, which happens whenever the
central bankers are nervous that the gold price is
escaping. A Reuters story about that interview is
appended.

Keep in mind that when central bankers talk about
selling gold, they usually mean writing off as sold
their leased gold, gold that is long out of the
vault and already sold into the market and a
dangerous liability for the bullion banks that
borrowed it. Such quot;salesquot; don't add to the gold
supply in the market; they help avert a short squeeze
by expropriating national assets in favor of
influential private interests -- interests that tend
to employ central bankers before and after their
careers with the central banks.

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

* * *

Buba eyes 400-600 tonne gold sale in new pact, paper says

a href=http://biz.yahoo.com/rm/031013/minerals_gold_bundesbank_2.htmlhttp://biz...

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.

The paper, citing quot;informed financial circles,quot; said any sale
would take account of market conditions. As a precondition,
current law would need to be changed to allow proceeds from
any sales to be invested in interest-bearing securities, the
paper said in an article released in advance of publication on
Tuesday.

Speaking to the paper, Bundesbank President Ernst Welteke
declined to comment on details of any deal ahead of
discussions in the spring among central banks to renew a
gold sale agreement. The current agreement expires next
September.

Boersen Zeitung said its sources assumed that a new
agreement would increase gold sales by a maximum of
10-15 percent over the current one, which caps total
sales at 2,000 tonnes over the five-year life of the
agreement, or about 400 tonnes per year.

Good demand for gold meant the gold market could take
increased sales in its stride, the paper added.

The Bundesbank was unavailable to comment on Monday
on the Boersen Zeitung story.

Dutch central bank governor Nout Wellink said last month
central bankers had briefly discussed gold sales on the
margins of a meeting of world financial officials in Dubai in
September and that they were unlikely to fundamentally
change their approach to sales in any new agreement next
year.

The Boersen Zeitung said the Bundesbank was looking at
options for managing the proceeds from any future gold
sales, which could bring in over four billion euros given a
favourable gold price.

quot;Nothing has been decided by the board,quot; the paper quoted
Welteke as saying. It said one of Welteke's preferences
would be to use the gold sales to fund education and research.

Welteke has already said that proceeds from gold sales
cannot be used to finance government deficits. The Bundesbank
is understood to hold around 3,500 tonnes of gold.

----------------------------------------------------

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a href=http://www.minersmanual.com/minernews.htmlhttp://www.minersmanual.com/mi...

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----------------------------------------------------

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----------------------------------------------------

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