Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Agnico Eagle: Correction Underway | Main | Why Investors Will Choose Gold and Silver »
Wednesday
Jul252007

Gold Rocked by Central Bank Selling

Gold Council 25 jul07

In a communiqué from Bloomberg the central banks recent gold sales and planned sales for the future are weighing heavily on gold.

The article quotes Natalie Dempster who is the investment manager at the London based World Gold Council as saying:

“European central banks have sold 342.4 tons of gold as of July 20 under an agreement that caps annual sales at 500 tons through 26 September 2007.”

If that is correct then the central banks can still sell another 157.6 tons through August and September, which equates to around 18 tons per week. The other side of the coin of course is that the more savvy Asian banks could well mop up this amount of gold without the market being too badly damaged. After all gold has managed to rise despite these on going ‘giveaways’ by the central banks.

This is not something new although it could well hamper the progress of gold prices. So, we remain as bullish as ever and should the opportunity present itself in the form of a bargain, then we will add to our current position.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (2)

For the bulls,let's hope this is a replay of "Brown's Bottom" when the then UK Chancellor managed to sell half the nation's reserves at the low.............

July 25, 2007 | Unregistered Commenterbob

nice reporting hope asia mops up some gold and supports gold.

April 2, 2008 | Unregistered Commenterfrankseles

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>