New Central Bank Gold Agreement Signed
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Great article that discusses the new CBGA and it's overall impact to the gold market.
From a macro-economic standpoint and looking at the CB gold situation alone, gold looks to be VERY bullish.
Article
To summarize a few points that I thought were important:
1. The new CBGA actually lowers the max sales quota through 2014.
2. The new CBGA includes any future IMF sales, and the article discusses the likelihood of this ever actually happening.
3. The Asian CB's are underweight gold and very much need to diversify INTO gold, while ECB's still need to diversify out of gold, although not necessarily that quickly and the impact will be diminished.
From a macro-economic standpoint and looking at the CB gold situation alone, gold looks to be VERY bullish.
Article
To summarize a few points that I thought were important:
1. The new CBGA actually lowers the max sales quota through 2014.
2. The new CBGA includes any future IMF sales, and the article discusses the likelihood of this ever actually happening.
3. The Asian CB's are underweight gold and very much need to diversify INTO gold, while ECB's still need to diversify out of gold, although not necessarily that quickly and the impact will be diminished.
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