MARY ANN C. BARTELS, Merrill Lynch
"Gold keeps breaking out to new recovery highs now at $723. An increasing number of Central Banks around the world are indicating they might be buying the precious metal in order to diversify their currency reserves. We recently heard comments out of Russia that they are increasing their gold reserves with a target from 5% to 10% of total reserves to be in gold. The Chinese economists are urging the Central Bank to quadruple its gold reserves. This has created a supply gap for the commodity with many other countries becoming more reluctant to sell
gold – all setting the stage for gold to go even higher." (May 15, 2006)

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