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Vicious Circle. The Soviet Union, the second largest gold producer, is feeling the price drop too. The Soviets depend on gold sales to get hard currency needed to buy U.S. grain and other imports. Consolidated Gold Fields Ltd., a London-headquartered mining company, predicts that the Soviets this year will have to put 10 million ounces of gold on the market—twice last year's sales. Those heavy offerings will tend to push the price down further, and possibly put the Soviets in a vicious circle: the lower the price goes, the more gold they have to sell to pay for imports, and the more they sell, the lower still they depress the price.
*The French have another monetary worry: since July 1 the franc has dropped 3.8% against the dollar. Reasons: the current drought will reduce agricultural exports, and French inflation, at 11%, remains high.