Have a read of this. Who wants gold? "All That No Longer...

Have a read of this. Who wants gold?

"All That No Longer Glitters
GOLD FEVER, GOLD RUSH, gold digger. It may not be too long before such phrases fade from use forever-- along with the allure that the precious metal once held for investors.....
Says Keith Goode of Bell Securities in Sydney: "There are too many players in the market who would rather see it go down." Indeed, analyst David Walker of ABN Amro Hoare Govett Australia says he would not bet against the price slipping to $280.....
A technical paper issued by the U.S. Federal Reserve dismisses the notion that gold should be a core asset in central bank portfolios. (For online versions of this and other Fed studies as well as minutes of board meetings, try its web site: www. bog.frb.fed.us.) The Fed has 8,000 tons of gold, said to be 73% of its foreign exchange reserves. Some analysts have gone so far as to suggest that central banks should hold no more than 10% of their assets in gold. After all, gold has not appreciated in value while other investments have. For example, proceeds from the Australian sale would earn at least $120 million a year if put into U.S. treasury or other gilt-edged securities. And as for gold's traditional role as a hedge against inflation, the U.S. dollar now seems to have taken over that job."
The full article is at http://www.asiaweek.com/asiaweek/97/0725/biz1.html