WILD FLUCTUATIONS

Star (Christchurch), Volume LXIV, Issue 853, 29 August 1933, Page 1

WILD FLUCTUATIONS

Heavy Profit-taking in Kaffir Market. SCRAMBLE FOR GOLD SHARES. United Press Assn.—By Electric Telegraph—Copyright. (Received August 29, 11.30 a.m.LONDON, August 28. Owing to foreign exchange developments, a scramble to deal in gold shares made the Kaffir market difficult to reach. Kaffirs fluctuated wildly, in the first few minutes rises of 6d to 7s 6d occurring throughout the list. Heavy profit-taking followed, but there were still substantial gains in gold shares in the afternoon. PRICE OF GOLD FALLS. British Official Wireless. (Received August 29, 11.30 a.m.) RUGBY, August 28. To-day’s fall of 7£d in the price of gold caused some profit-taking. West Africans, Indians and West Australians went up. The other major feature on the London stock markets was the continuance of the steady rise in home rails. Gold is quoted at £6 8s 84 d per fine ounce.

INFLATION LIKELY.

Britain Cannot Resist Much Longer. LONDON, August 28. A belief that Britain will not much longer be able to resist inflation is growing with the rise in the price of gold. The “ Financial News ” devoted half a column to discussing the investor’s best policy in the event of inflation. The “ Financial Times ” declares that confidence in all forms of currency is steadily decreasing. The entire £200,000 worth of bar gold offered on the market on Saturday was taken by Continental buyers, most of whom are hoarding metal in London. It is estimated that the gold stored in London safe deposits amounts to £50,000,000, the bulk of which belongs to foreigners, as the Bank of England is empowered to purchase British hoards at the statutory price of 84s 9d an ounce.

Some sections of the City expect a general abandonment of the gold standard before 1934. The City attaches the greatest significance to the Roosevelt—Norman conversations, many persons hoping that they will result in a stabilisation agreement, as it is believed that President Roosevelt is disinclined to inflate while Mr Montagu Norman considers a general abandonment of gold extremely dangerous. STERLING DEPRECIATING. (Received August 29, 12.30 p.m.) LONDON, August 28. The City Editor of the “ Daily Mail,” commenting on the feverish dealings in gold shares, considers that the policy of the authorities is to allow sterling to follow the dollar, and not the franc. If the dollar continues to depreciate sterling probably will follow, intensifying the gold boom. Moreover, sterling nominally tends to depreciate in the autumn owing to commercial requirements.