Central Banks sell much less gold than allowed
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By Jan Harvey
LONDON (Reuters) - Official sector gold sales under the Central Bank Gold Agreement (CBGA) have totalled only 140 tonnes so far in the pact's final year, well short of the maximum 500 tonnes allowed, the World Gold Council said.
France and Sweden are the two principal remaining sellers, the WGC said in an emailed statement on Wednesday, although the possibility exists for a further sale by the European Central Bank.
"With 140 tonnes of sales, according to our numbers, it looks like we have had over 100 tonnes less than was sold over the same period of last year," said Barclays Capital analyst Suki Cooper.
"Given the current pace, it is likely this is going to be the lowest annual sales-per-quota year since the start of the very first agreement."
Banks reluctant to sell gold even at $1k
LONDON (Reuters) - Official sector gold sales under the Central Bank Gold Agreement (CBGA) have totalled only 140 tonnes so far in the pact's final year, well short of the maximum 500 tonnes allowed, the World Gold Council said.
France and Sweden are the two principal remaining sellers, the WGC said in an emailed statement on Wednesday, although the possibility exists for a further sale by the European Central Bank.
"With 140 tonnes of sales, according to our numbers, it looks like we have had over 100 tonnes less than was sold over the same period of last year," said Barclays Capital analyst Suki Cooper.
"Given the current pace, it is likely this is going to be the lowest annual sales-per-quota year since the start of the very first agreement."
Banks reluctant to sell gold even at $1k
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--Severian the Lame
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Considering that many CB's sell gold under the table via leases, swaps, etc. it's hard to know what has really been moved around. The CB's double count gold by keeping gold on their books that they have leased, swapped, etc. Hence, both CB's in such a transaction claim to own the same gold. The IMF and WGC concur with this type of accounting. Why mess up the books with a bunch of silly leases and swaps?
But if the IMF gets to finally dump their 403 tons this year, it will help make up for the EU sales shortfall. The banks selling their gold really don't want to get rid of it but are subject to pressure from the G8 nations to help out in currency management, which affects nearly all of them.
roadrunner