Dear Friends,

Having traded through the 1968 to 1980 bull market in gold and bear market in the dollar, I promise you that any spin idea that central banks will be guided by the US Fed is beyond nonsense.

Rather, a day is coming quite soon when central banks adopt the 1976-1980 strategy of "Every One for Themselves." After major BS about selling gold some major CBs bought gold.

Regards,
Jim

Gold reserves more important than before says the Bundesbank

"Gold sales are not a suitable way to sustainably consolidate the public accounts," the Bundesbank said after a query about trade union proposals that it sell gold to fund some of a 25 billion euro ($37 billion) economic stimulus package.

BERLIN, Aug 22 (Reuters) - Germany's Bundesbank on Friday rejected calls that it should sell some of its gold reserves to help boost the slowing German economy, telling Reuters financial and political uncertainty make the reserves even more important than before.

"Gold sales are not a suitable way to sustainably consolidate the public accounts," the Bundesbank said after a query about trade union proposals that it sell gold to fund some of a 25 billion euro ($37 billion) economic stimulus package.

"National gold reserves have a confidence and stability-building function for the single currency in a monetary union. This function has become even more important given the geopolitical situation and the risks present in financial market developments."

The Bundesbank is the world's second-largest holder of gold after the U.S. Federal Reserve, and has sold just 20 tonnes out of total reserves of over 3,000 tonnes in the past five years.

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