Posted on 08/21/2009 4:43:07 PM PDT by h20skier66
In the week when a new Agreement by European central banks regarding gold sales, only a tiny sale of 0.15 tonnes of gold was made the week before last and last week saw no sales. In the fist few months of the last year of the Agreement beginning on the 26th September 2008, as you can see from the Table below, around 140 tonnes of gold were sold by the signatories to the Central Bank Gold Agreement. Of these only just under 95.6 tonnes came from sellers who announced their intentions before they sold at the beginning of the Agreement.
This leaves a total of 215.5 tonnes of announced sales still to be sold. Of these announcements Portugal and Austria have not sold for the last two years [153 tonnes]. Leaving France selling at a trickle, if at all 50 tonnes?
So at first glance it appears extraordinary that a new Agreement has been announced by the E.C.B. for another 5 years under which a new lower ‘ceiling' of 400 tonnes of gold per annum has been announced. Where will the other 1,755 tonnes come from? None of the signatories have announced intentions to sell more gold.
1. That this is an agreement to reassure the market that under no circumstances will gold sales be made from central banks exceeding 400 tonnes in any one year, an amount that can be absorbed by the market easily.
2. More positively the realities are that sales of a maximum in one year will be nearer to 50 tonnes.
Please note the statement from the E.C.B. included this comment:
"The signatories recognize the intention of the I.M.F. to sell 403 tons of gold and noted that such sales can be accommodated within the above ceiling."
(Excerpt) Read more at commoditynewscenter.com ...
Speculators usually end up holding the bag.
I favor the head-and-shoulders-knees-and-toes approach when it comes to gold markets. At least that’s what my two-year-old nephew tells me is cool today.
Hey, Phillips.. the word is “hoarding”.
Time to get out of gold, way way overpriced. Don’t get caught holding a no-yield barbarous relic as the markets return to normal function. Gold is due for a major crash.
US have any gold left at fort knox?
the barbarous relic has kept its purchasing power while the paper money you hold has lost 97% in value since 1913
Sure. Let’s just hold the paper, that keeps getting printed, of a bankrupt country that just announced it is going to borrow / print another 2 Trillion dollars. What’s not to like?
;-)
Don’t say I never warned you when it returns to its normal relationship with platinum. My gold target, given the normalization of financial markets now underway is sub-$500/oz. That of course is the spot price, but given the hideous illiquidity of the physical market, your results will be some 10% below the spot price.
They won't. Too risky to exit gold at the moment. It is moving slowly up, and could go for a run.
given the hideous illiquidity of the physical market, your results will be some 10% below the spot price.
I can sell 1 oz Eagles for $20 ABOVE spot price ($18 (1.8%) less than I buy them for) from the same source, paying shipping only on the sell-back. www.tulving.com
Why so hostile to gold?
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