Chinese central banker says gold is 'separate' from FX diversification

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9:30p ET Friday, November 10, 2006

Dear Friend of GATA and Gold:

Reuters has gotten another interview with the head of China's central bank and drawn him out on plans for diversification of the country's foreign exchange reserves. The Reuters correspondent, Simon Rabinovitch, even had the wit to ask about gold, and got an answer that was telling for being so cryptic: "That's a separate thing."

NovaGold CEO and Grandich on Canada's ROB-TV

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5:30p ET Friday, November 10, 2006

Dear Friend of GATA and Gold:

Rick Van Nieuwenhuyse, president and CEO of NovaGold Resources, was interviewed on Canada's ROB-TV this morning about the company's effort to fend off Barrick Gold's hostile takeover attempt. He was followed by Peter Grandich of the Grandich Letter, who explained why he believes that the U.S. government manipulates the equities and gold markets and who cited GATA's work. You can watch the program for a week at the ROB-TV archive here:

China will power gold upward for years, Gartman says

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China 'To Boost Gold
for Years to Come'

By Ambrose Evans-Pritchard
The Telegraph, London
Friday, November 10, 2006

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/11/10/cnchin...

Gold surged more than $19 an ounce to $635 in New York trading after China's central bank chief said the country was eyeing "lots of instruments" as alternatives to US dollar reserves. Governor Zhou Xiaochuan said the bank had a "clear" plan to lower the dollar share of its exchange reserves, now $1 trillion and rising fast.

China says it long has had a dollar diversification plan. Do you?

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8:06p ET Monday, September 4, 2006

Dear Friend of GATA and Gold:

Maybe you've heard the one about the two central bankers passing each other in the hall at the Bank for International Settlements in Basel, Switzerland. One says "hello" and the other thinks, "I wonder what he meant by that."

That's how you have to regard the comment made to Reuters by the governor of the People's Bank of China, Zhou Xiaochuan, and quoted in the Bloomberg story below. (Sorry, but we've been unable to locate the original Reuters story.) Zhou sent the U.S. dollar tumbling today by remarking at a European Central Bank conference in Frankfurt:

Treasury joins Fed in repo-like manipulation of money supply and markets

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U.S. Treasury Is Quietly Doing Fed's Work

By John Crudele
New York Post
Tuesday, November 7, 2006

http://www.nypost.com/seven/11072006/business/u_s__treasury_is_quietly_d...

For the past few years the U.S. Treasury has been quietly involved in what the financial markets call "repo" agreements, and this near-secret operation could explain why the nation's money supply seems to be confoundingly large.

Bank of China offers gold options, silver forwards

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From Reuters
Tuesday, November 7, 2006

http://asia.news.yahoo.com/061107/3/2sgi0.html

BEIJING -- The Bank of China said on Tuesday it is offering gold options to individual account holders and silver forwards and silver leasing to its corporate account holders.

Some Chinese banks already offer "paper gold" and other gold-related investment tools to attract deposits from increasingly prosperous domestic clients.

Peter Grandich: Don't blame manipulation for gold's every fall

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8:15p ET Monday, November 6, 2006

Dear Friend of GATA and Gold:

The latest edition of Peter Grandich's letter came out today and has been posted at GoldSeek. Among other things, Grandich remarks:

"While I believe it's foolhardy to think that gold is manipulated each and every day (that's what some seem to say whenever it's down or has declined from higher prices), I do believe a group or groups has capped and is likely in the future to continue to cap or manipulate the gold price. But again, I urge you not to use manipulation as the only excuse gold is down on a particular day. There are many technical and fundamental reasons, and those who only see manipulation are not doing you any favors in being blind to other reasons. This, by no means, lessens my view on manipulation. I believe it occurs, but to say it is the only reason gold declines is a form of sour grapes.

China planning shift from Treasury to mortgage and corporate debt

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China Wants to Adjust
FX Portfolio, Paper Says

From Reuters
Monday, November 6, 2006

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&story...

FRANKFURT -- China wants to shift its foreign exchange portfolio away from U.S. Treasuries and into higher-yielding U.S. corporate and mortgage-backed debt, a German newspaper cited a financial source saying on Monday.

The CPI must have replaced Picassos with Elvises on velvet

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Art World Abuzz
as New York Is Set
for Billion-Dollar
Auction Season

By Catherine Hours
Agence France-Presse
Sunday, November 5, 2006

http://news.yahoo.com/s/afp/20061105/lf_afp/afplifestyleartauctionussche...

NEW YORK -- The art world is anxiously eyeing a series of impressionist and modern art auctions in New York this month, with expectations high that interest in the flourishing market will set records tumbling.

Shift to Democrats in Congress would transform policy debates

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By Brad Foss
Associated Press
Friday, November 3, 2006

http://news.yahoo.com/s/ap/20061103/ap_on_bi_ge/election_business;_ylt=A...

Policy debates affecting every corner of the economy are likely to shift in major ways if Tuesday's election, as expected, gives Democrats more power in Congress.

Hearings focused on boosting domestic petroleum supplies could morph into talks about raising energy efficiency.