The World Gold Council publishes a monthly list of official gold holdings
of 112 countries and institutions. This list is mainly based on data
reported to the International Monetary Fund (IMF).

E-GOLD has 44,800 ounces in the vault, which is equal to 1.4 tonnes (at
32,151 troy ounces per metric tonne). This puts e-gold on rank #88 of the
112 countries. It means that e-gold has already more gold than 24 of the
IMF member countries. Not bad for a young Internet company.

The WGC statistics reveal some worrying aspects of the national

1. The total gold holding of the 109 countries + IMF + BIS + ECB is just
under 33,000 tonnes which is on average only 12% of the countries'
reserves. The USA reported 8,136 tonnes (56%), the Euro countries 12,427
tonnes (31%), the IMF 3,217 tonnes and Switzerland 2,419 tonnes (40%).
These four groups own 80% of the total official gold

2. The statistics include gold leased out to bullion banks and
manufacturers. The physical gold owned by the central banks might be less.
I have not yet obtained accurate statistics to determine the extent of the
gold leasing

3. Harry Schultz estimated in January 2001 that 78% of the non-gold
reserves are held in US Dollars or US Treasury bonds. This places an
extreme responsibility on Alan Greenspan to maintain the international
confidence in the dollar.

4. These statistics reinforce the conclusion that the Dollar and all
national currencies are backed by someone else's liability. As long as
everyone has confidence in the system it will work. However, this week the
Turkish Lira collapsed in value by 28%.

5. Douglas Jackson's comment a few days ago about the possibility that
Bullion banks might not always have the physical gold in stock, just
highlighted the fact that most institutions have short positions in gold.
This is very profitable while the price is falling and many institutions
would be very vulnerable in case the price would start to go up.

In a new book, The Future of Money, Mr Bernard Lietaer (ex- Belgian
National Bank) makes a strong argument for commodity backed currencies
(like e-gold) and for time based community currencies (like TimeDollars
and LETS). He does not spare his criticism of fiat currencies. It is worth

The tide is changing against national currencies and e-gold, e-dinar and
GoldMoney are well placed to become major methods of payment in the

World Gold Council web site February 2001: 
The Future of Money :
The Harry Schultz letter as published on

You are currently subscribed to e-gold-list as:
To unsubscribe send a blank email to [EMAIL PROTECTED]

Reply via email to