Post by
blacky2 on Mar 31, 2006 7:58pm
no more gold sales?
This story, on the wires after market close, should be bullish for bullion on Monday.Any thoughts?
ECB sells 57 tons of gold
31/03/2006 20:22 PM
Frankfurt - The European Central Bank (ECB) sold 57 tons of gold in the course of last year but is not planning any further gold sales in the period to the end of September 2006, it said Friday.
The sales were authorised under an agreement between central banks on gold reserves. That agreement was reached in 2004 between the ECB and the 12 national banks of the nations making up the eurozone.
The banks are empowered to sell up to 500 tons of the precious metal in total per year. The agreement applies for five years.
Germany's central bank, the Bundesbank, which like the ECB has its headquarters in Frankfurt, used far less than its entitlement last year, selling just 5 tons by way of a German finance ministry issue of special gold coins to raise €47m.
Despite political pressure to sell gold to ease the government deficit, the Bundesbank insists it will only be releasing 8 tons in the period up to September, also for gold-coin issues.
The Bundesbank is not likely to run out of gold any time soon. Even after that sale, its vaults will hold 3 428 tons of gold.
Sapa-dpa