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[arbman]

Maybe the old gold veterans can tell us whether they have seen similar incidents from the '70s when the gold was hovering at the all time highs back then, if they heard such news ahead of the gold top...

Blanchard and Co., the largest retailer of American coins and precious metals in the U.S., said in a statement Wednesday that there has been a big sell-off in central bank gold reserves in recent weeks.

"The gold market has absorbed 89 tons of ECB sales over the last seven weeks, including 12.3 tons last week alone," said Donald W. Doyle, Jr., chairman and CEO of Blanchard, in a statement.

"Considering that central banks sold 112 tons into the market over the last six months, gold has performed remarkably well in light of this huge additional supply," Doyle said.

CBS reports



BTW, the recent high in the gold is not quite confirmed by the silver too...

[flyers&divers]

[quote name='kisacik' post='286501' date='May 4 2007, 12:49 AM'] Maybe the old gold veterans can tell us whether they have seen similar incidents from the '70s when the gold was hovering at the all time highs back then, if they heard such news ahead of the gold top...

[quote]Blanchard and Co., the largest retailer of American coins and precious metals in the U.S., said in a statement Wednesday that there has been a big sell-off in central bank gold reserves in recent weeks.

"The gold market has absorbed 89 tons of ECB sales over the last seven weeks, including 12.3 tons last week alone," said Donald W. Doyle, Jr., chairman and CEO of Blanchard, in a statement.

"Considering that central banks sold 112 tons into the market over the last six months, gold has performed remarkably well in light of this huge additional supply," Doyle said.[/quote]

CBS reports


This is amazingly bullish if the market is absorbing huge quantities and it does not back off.
It's being syphoned off to China and India. Perhaps it was also balanced by lifting of hedges by producers.
Gold in private hands won't be sold in a systematic fashion like central banks do it will be sold in an emotional fashion when the eventual parabolic move exhausted itself.

F&D

Edited by flyers&divers, 04 May 2007 - 06:31 AM.