CBGA gold sales

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ltlredwagon's picture
ltlredwagon
Status: Bronze Member (Offline)
Joined: Nov 23 2008
Posts: 87
CBGA gold sales

I'm not knowledgable enough yet in this area to be able to evaluate this article but I thought the data was relevant. www.mineweb.com - today's article on CBGA gold sales, top of page.

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5570
Re: CBGA gold sales

ltredwagon,

that would be a good thing to post to the daily digest, where current news can be discussed.  Try there too.

Also, I find it helpful to post a direct link and a snippet which can help save people some time:

CBGA gold sales almost infinitesmal in first year of new Agreement

LONDON - In the first year of the latest Central Bank Gold Agreement, which ended yesterday, the Financial Times reports that European Central Banks sold a grand total of 6.2 tonnes of the precious metal, a huge fall (some 96%) from the final year of the previous CBGA. This is the lowest total since the gold sales agreement was first signed back in 1999. At their peak Eurozone gold sales under the Agreement reached 497 tonnes only five years ago. How the Banks' attitudes have changed!

At the moment the only significant gold seller is the IMF with its mandate to sell 400 tonnes of which well over half has already been purchased - virtually all by Asian Central Banks. With the dearth of sales by the Europeans, and continuing purchases by other Central Banks, this has provided good support for the gold price as supply from the Central Banks has more than dried up. Indeed there is a suggestion that some Central Banks are hiding their purchases of gold through internal accounting measures so as not to overly disrupt that market.

China here is a particular case in point. Any overt Chinese buying on the open market would almost certainly give the gold price a huge boost, which is not necessarily in the immediate interests of a Central Bank trying to supplement its gold holdings. How many more may be using similar methods to hide their dealings in the market?

Good article, thanks!

No sales by Europe (which still fears the dreaded inflation), and increasing purchases by Asian CBs all coupled to falling mine output.  Hmmm....I wonder why gold has been rising lately?

ltlredwagon's picture
ltlredwagon
Status: Bronze Member (Offline)
Joined: Nov 23 2008
Posts: 87
Re: CBGA gold sales

Thanks for the kind counsel, Chris. This post was a bit problematic as I was posting from my new phone (recently learned to disable rich-text) but I'll follow your advice on the digest, links, and snippets.

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