Washington Post"In a provocative research paper published recently, economists Dale Henderson of the Federal Reserve and Stephen Salant of the University of Michigan argued that the world would be better off if the central banks began to sell their gold and all the mines shut down. If the gold hoards serve no monetary purpose, keeping them off the market means that inefficient, high-cost mines continue to produce to meet the demand for gold, thus wasting resources..." |
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John M. Berry, Washington Post Staff Writer (July 17, 1997) | |
Journal of Commerce"When they wrote that government ownership of gold does not contribute directly to general welfare, the study's authors...did not speak on behalf of the Fed. However, many outside the Federal Reserve take issuance of the study (International Finance Discussion Paper No. 582) as a clear sign the United States is considering a major change in its policy toward gold..." |
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Vincent E. Cook in the Journal of Commerce (July 3, 1997) | |
Christian Science Monitor"But keeping monetary gold is a costly decision, says Salant. He calculates that the US Treasury has lost tens of billions of dollars by not selling all of its gold in 1979. From May 1978 to April 1979, it sold small amounts of gold each month. The lowest average auction price was $220 an ounce. Today, the price of gold is about $310. However, just to keep up with inflation, the price would have to have risen to $475 an ounce. Many investments have done better than inflation. If the $220 proceeds from the sale of an ounce of gold in 1979 had been put into Treasury bills, it would have grown to about $780 by now.""Salant, Dale Henderson, a Federal Reserve economist in Washington, John Irons, and Sebastian Thomas calculated that if the nations of the world sold or loaned their 1.1 billion ounces of official gold now---rather than waiting to sell it in 20 years---they would improve their return by $128 billion. US gold stocks amount to a quarter of that total. So Washington would be $30 billion ahead." "The Fed released the paper in June. But, says Salant, it will be up to the Treasury and undoubtedly President Clinton to decide whether the US enters the gold market again. Most analysts seen that as unlikely." |
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http://www.csmonitor.com/durable/1997/11/05/intl/intl.1.html | |
David R. Francis in the Christian Science Monitor (November 5, 1997) | |
CNBC TVInterview with Ward Lassoe of CNBC was taped in August but has yet to air |
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Time Magazine"Gold prices have steadily declined since the `80's because with roaring markets and low inflation worldwide, sitting on non-interest-bearing gold makes little sense for governments. 'There's no point in holding it,' says Dale Henderson, a gold specialist at the Federal Reserve." |
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Time Magazine, July 28, 1997 |