Mostly: Classical

[amarksp]

Lots of disbelief out there that Central Banks could once again start selling their gold. Maybe so, but I believe at some point Central Banks will once again desire to "manage" the POG. It all depends on what POG they want to defend, they certainly have enough gold in their vaults to sell... Also, as long as price of oil is relatively high, we have good gold investment demand from OPEC countries so Central Banks may be hesitant to sell right now since plenty of buyers.

IMO, central banks do want to "manage" POG. It's just a question of when. It could be POG=$700 or $800 or $650 or $1,000, but at some point in time we will get meaningful central bank sales coupled with jawboning of future sales from Germany, France, Belgium, Italy, etc. Until then, watch oil price (over $50/barrel is good) for its likely impact on OPEC country gold demand. OPEC buying substantial gold ounces with their excess oil profits. India gold demand has been very weak for past 3 months, certainly not a positive factor.

I remain very positive on gold and gold stocks for 2006.

just my thoughts and opinion...