FLOW OF GOLD

Evening Star, Issue 21637, 5 February 1934, Page 9

FLOW OF GOLD

EFFECT OF AMERICAN DEVELOPMENTS POSITION IN LONDON (British Official Wireless.) Press Association—By Telegraph—Copyright. RUGBY, February 3. (Received February 5, at noon.) Commenting on the situation caused by America’s return to the gold bullion standard, the city editor of ‘ The Times’ says; “ This action has caused two strongly opposed movements—namely, a rush to buy gold in the cheaper markets of Europe and to sell it in the dearer markets of America, and, on the other hand, a rush to buy dollars and dollar securities. The second movement has been more powerful in its influence than the first one, despite plans for very large shipments of gold to America. The writer mentions that there is at present no sign of an American exchange fund being brought into operation for the purchase of francs and pounds to eliminate the premium of the dollar over the gold franc, which so long as it remains will induce gold shipments to America. These are being made by private institutions and not by the United States Government.” The foreign exchange market was again busy to-day. An outstanding feature was the recovery of sterling compared with the leading gold currencies. The American dollar depreciated from the overnight rate of 4.90$ to 4.935. Interest on the Stock Exchange remained centred in the gold mining section to the exclusion of other departments, which remained quiet. Mining shares continue to move upwards, although the gold quotation to-day was Is 3d down at £6 18s 3d. Much gold is flowing to the United States, and liners are leaving to-day carrying large shipments.

BOOM IN GOLD SHARES SEVERAL FORTUNES MADE. LONDON, February 4. (Received February 5, at 12.10 p-m.) The Berengaria and the Bremen, from Southampton for New York, took £5,500,000 worth of gold. The former shipped £1,500,000 more at Cherbourg from the Bank of France. Amsterdam sent £1,800,000 worth from the Netherlands Bank. The city is full of stories of fortunes made and being made in the gold shares boom. The ‘ Sunday Express ’ calculated that there has been an appreciation of £5,000,000 in the value of leading shares in the past week. Mr H. G. Latilla, one of the pioneers of the West African goldfields, has seen his holdings appreciate by nearly £1,000,000. Mr Geoffrey Hart, a partner in a firm of stockbrokers, who has been buying gold shares for twelve years, says that he made approximately £200,000. The Marquess of Queensberry and others have done well.