Central Banks "Sell" Gold

The following is another example of Central Banks intervention in the gold market to depress the price of gold. Most often the sale is from one bank to another, but the action does keep a cap on the price of gold. We may have to wait until after the election and on into December before the cap is released.

"Resource Investor: Central banks quicken pace of gold sales

Submitted by cpowell on 09:55PM ET Wednesday, September 20, 2006. Section: Daily Dispatches

By Jon A. Nones
Resource Investor
Thursday, September 20, 2006

ST. LOUIS -- The European Central Bank reported yesterday that three central banks in the European Gold Agreement (EGA) decreased holdings by EURÂ 499 million ($633 million) in the week ending September 15. At today's gold prices, this totals 33 tonnes and puts Septembers gold sales at 40 tonnes so far.

"It's becoming clear that my suspicion of central bank selling is indeed a major factor behind the recent gold decline," said Peter Grandich, editor of The Grandich Letter in a note today.

.... For the full story:

http://www.resourceinvestor.com/pebble.asp?relid=24013"

In the meantime, DROOY is below 1.30 this morning. That to me is a good time to buy. I did buy more yesterday at 1.28. It is up to you as to your need for more mining stock investment.

Gold is trading at 578.60 now. Silver at 10.68.

It is always an interesting time in the markets. Some day the market forces will again take charge, but for the time being, intervention is the major influence on the market.

Oil prices are down and look to stay down for a time. Exploration has increased and the new deep well in the Gulf looks add substantial supply. Without interruption of delivery, we will likely be in for a time a lower prices. Some are predicting $30 oil. Possibly?????????

Put your trust in the Lord, not in man. Keep looking upward for security.

Best to each, Doug