Are Central Banks Slowing Their Gold Sales?

Wednesday, September 28, 2005


Gold sales under the Central Bank Gold Sales Agreement (CBGSA) may fall well short of the proposed 500 tons in the coming 12 months. According to Pierre Lassonde, president of the world's biggest gold producer, Newmont Mining, "for the next year only 250 of the 500 ton quota has been spoken for," miningmx.com reports. Answering questions at the Denver Gold Forum Lassonde said there was a turnaround in official sector attitudes to gold which now believed bullion prices might improve. The fear motivating the central bank gold sales of the 1990s had been replaced by greed, he said.
Paul Walker, an executive director for GFMS, a UK independent metals research house, said that net sales by central banks (which includes gold bought by the official sector), would "probably be less than the 500 ton quota. The jury is still out but I wouldn't be surprised if it were lower," he said.
It has to be noted that no official announcement about the CBGSA for the coming 12 months, starting last Monday, has been made yet.

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