Post by
gabrielgray on Jul 25, 2007 1:16pm
ECB: Liar, Liar, pants on fire
Remember how, just a few weeks ago, the Euro Central Bank said there were no further plans to sell any more gold before the end of the Washington Agreement year this fall?
And then, if time has been hanging heavy on your hands, you may recall that I wondered if they were changing their minds about that as gold soared upward?
In that case, you might not be shocked to learn that Euro banks have been selling gold, and plan to continue selling gold, tons and tons of gold, over the next nine weeks. What a surprise!
https://www.bloomberg.com/apps/news?pid=20601012&sid=aCT2RPgqCI6A&refer=commodities
"No further gold sales" turns into "180 more tons of gold sales" in the time it takes to turn your back on these criminals.
Under the terms of the Washington accord, Euro central banks are restricted to selling no more than 500 tons of gold in any one year.
The story says they've sold 340 tons as of July 20, and they plan to sell another 160 tons over the next couple of months. Let's see...340 tons plus 160 tons...why, that works out to about 500 tons! What a coincidence! And another strange coincidence: Every time gold gets anywhere near $700/oz, Euro bankers announce large gold sales. Isn't that remarkable!
The chances of a summer gold breakout just dwindled to near zero. Unless....
Comment by
kmilne on Jul 25, 2007 11:35pm
Gabriel, do you read Sinclair's commentaries on his website. He has told us many times that any central bank selling never hits the markets, but simply goes to another central bank, like maybe some of the smaller ones.
Any selling pressure generated by these announcements are purely psychological.