NERVES AND GOLD

Evening Post, Volume CXXVI, Issue 59, 7 September 1938, Page 10

NERVES AND GOLD

The price of fine gold wag announced in London yesterday at 144s 2|d per fine oz, an advance of over 2s 6d since the beginning of last month. It has been rising almost day by day from the beginning of August, and this may be taken as an indication of the very uneasy state of mind of Continental owners of qapital. The nerves of Europe, no doubt, are in a frayed condition, which is not to be wondered at in the present ebullient condition of European %ffairs. In June of last year a gold scare was also experienced, but from another cause: rumours of the devaluation of the American dollar,. or the .buying pride of gold which is 35 dollars per ounce. On that occasion the London market was suddenly called upon -to deal with a very large quantity of gold. The Exchange Equalisation Fund bought much-iof it. American banks at that time were not certain of the price they would receive when the gold should arrive in America. The rumour was officially and authoritatively denied and the nervousness in the States was allayed. But now nervousness has broken out, like a fever, on the Continent £lnd the cause is obvious. When matters; political settle down in Europe then among the first indications of that much desired condition should be an easing in the price of gold. Meantime the higher the price the better, it is £pr gpld-pro^ucr

ing^ countries, led by South Africa. But a steep decline in the price of the metal would be a rather serious matter for such countries, and especially for Australia, and in some lesser degree, for New Zealand.