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Spiralling gold lease rates spur central bank talk

Section: Daily Dispatches

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:

a href=

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

a href=

* * *

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 quot;overexposedquot; in its lending of gold and has to borrow it
back quot;putting a squeeze on near-term liquidity,quot; 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.