Gold Agreement Central Banks Show Lack of Desire to Sell Gold
Source: Mineweb (8/8/08)
European Central Banks, once queueing up to sell gold, now appear to have no real desire to sell the metal, but prospects of a third Central Bank Gold Agreement still remain high.
The Fortis/VM Group's Yellow Book says gold sales by Central Banks have lagged considerably after hitting the target of 500t in the first year of the second Central Bank Gold Agreement (CBGA). Only 392.5t was sold in the year spanning 2005-2006 and 475.8t in 2006-7.
Sales for this fourth year are estimated at about 315t, and with only two months left, it could again be well below 400t. The Yellow Book estimates that sales will even be lower next year, unless the International Monetary Fund gets approval from its members to sell gold and joins the CBGA, or a country that has not announced sales yet decides to sell...