Swiss Bank Gold Sales - Further Analysis

Source:

The World Gold Council said in a recent Central Banks Case Study report that Switzerland no longer appeared as overweight in gold as it did in the late 1990s. The country has "more than halved" its official monetary reserves portfolio allocation in the metal through two sales programmes and the present would not be the best time for the country to undertake further sales.

The Swiss National Bank is unlikely to sell further positions of its gold reserves in the medium term as Switzerland is no longer overweight in gold.

The World Gold Council said in a recent Central Banks Case Study report that Switzerland no longer appeared as overweight in gold as it did in the late 1990s. The country has "more than halved" its official monetary reserves portfolio allocation in the metal through two sales programmes and the present would not be the best time for the country to undertake further sales.

The report said an important part of the motivation for the gold reserves sales programme of 2000-2005 was the transfer of part of the country's official reserves or the proceeds of its sales from the central bank to the government. This came as there was less need for a country like Switzerland to hold such large reserves at the time.

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