Plan to sell gold reserves worries some

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Plan to sell gold reserves worries some

By JOHN G. EDWARDS
REVIEW-JOURNAL

British proposals to sell International Monetary Fund gold reserves to help poor countries is raising concerns among U.S. and Nevada officials.

Even though Nevada is nicknamed the Silver State, gold is much more important to the state's economy than silver.

...snip...

Britain is proposing that the IMF revalue or sell some of its gold reserves to raise cash for a plan to help 18 poor nations, including many in Africa.

The Bush administration is opposing the plan because of concerns about the impact the sales would have on gold prices.

In 1999, for instance, gold prices slumped to a 20-year low of $252 an ounce after plans to boost gold sales and sell off some British gold reserves became public, noted Doug Hock, a spokesman for Newmont Mining Corp.

It's improbable that the IMF will dump gold on the market because the United States has effective veto power over programs at the IMF, Dobra said.

Senate Minority Leader Harry Reid, D-Nev., and other lawmakers say they are worried about the proposal, though...cont'd

http://www.reviewjournal.com/lvrj_home/2005/Jun-11-Sat-2005/news/26703989.html

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