Spiralling gold lease rates spur central bank talk


12:56p ET Tuesday, February 27, 2001

Dear Friend of GATA and Gold:

There's big news in gold today.

First, a story from the Mining Web/MoneyWeb people:

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Anglogold bidding for Gold Fields

By Tim Wood
Posted: 02/27/2001
04:00:00 PM
Miningweb 1997-2001

--- Developing World Exclusive ---
Third update - 11h45 EST.

NEW YORK -- Miningweb learnt late on Friday that Anglogold was still
pursuing a bid for Gold Fields.

Details are scant, but indications are that initial discussions were
framed around a price close to $4 per share (R31). Early on Tuesday,
additional information came to light indicating that the offer had
been revised upward to around $5.50 (R43) per share which represents
a 30 per cent premium to the current price.

* * *

You can read that story at:


If that link won't work for you, go to the home page here, and you'll
see the headline at the top:


* * *

And from CBS Market Watch, open speculation by an analyst that
the Bank of England's gold sale program is blowing up in the bank's

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Gold prices up for fifth trading day

By Myra P. Saefong
Last Update: 11:33 AM ET
Feb 27, 2001

NEW YORK (CBS.MW) -- Shares of metals companies turned lower Tuesday
while gold futures prices climbed for a fifth-straight trading day
amid strong demand for the precious metal.

The gold market was lifted by speculation that the Bank of England
is "overexposed" in its lending of gold and has to borrow it
back "putting a squeeze on near-term liquidity," Fidelis Madavo, an
analyst at Investec Securities, said in a research note.

Gold for April delivery rose $1.90 to trade at $268.70 on the
Commodities Exchange division of the New York Mercantile Exchange.
March silver declined by 1.5 cents to $4.43 an ounce.

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