 Gold
Forecaster - Global Watch
Central Bank Gold Agreement
Sales in 2006
Julian D.W.
Phillips
January 23, 2006
Excerpts
from "Gold Forecaster - Global Watch."
 With
general talk now speculating that Central Banks are turning back
to gold comes the news of GFMS having talked to many of them
and found them to be turning around in favor of gold! This is
important to gold, because Central Bankers views of gold do
lay the foundation of Investor attitudes and actions. Secondly,
if Central Banks turn from sellers to holders the impact on the
gold price is heavy. For them to turn to buyers would change
the entire future for gold.
Please note that if they view
gold as being necessary to the monetary system, they define gold
as money. As they are the writers of money, such a move would
take the price of gold to a point where it can act as global
money in one form or another. The path to that point may well
still be a long one, but every step on that journey takes the
gold price higher. We forecast that that they have already begun
down that road.
A look at the tiny amount of
gold sold by the signatories in the week ending the 13th January
appears on the surface to support that. Only one of the signatories
of the C.B.G.A. sold a _ tonne of gold. And this when the
gold price was moving to new recent highs!
 Why
did they not sell more? There could be many reasons, but the
most practical reason is a market one, don't fight a price 'spike',
IF you are hoping to bring stability to the market. No such reason
will be given by them as that appears to be too close to price
management [manipulation?]. It is apparent now that the ceiling
of 500 tonnes will not be sufficient to control this market.
If gold is accepted as a currency, why are they selling it? Policy
changes in Central Banks take time, but placing a hold on a policy
as a review takes place need not do so. We are not privy to their
discussions so have to wait to hear from them, but we are watching
these patterns of sales week by week and will continue to report
on them.
If the present pattern persists
and sales fall away, we would expect them to sell sporadically
into 'spikes', or to announce their change of policy and a cessation
of gold sales. This year promises change!
January 20, 2006
-Julian
D.W. Phillips
email: gold-authenticmoney@iafrica.com
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