Eurosystem's Gold Hoard Revalued 15%

Wednesday, October 05, 2005

Call that selling into a buyer's market. In an effort to "yieldize" their hardest of all reserve assets the 12 members of the ECB's Eurosystem have sold gold with a value of 3.3 billion Euros in the first three quarters of 2005. While the Eurosystem began the year with gold reserves valued at 130.3 billion Euros the sharp upswing in gold prices led to a revaluation to 149.9 billion Euros by September 30, the most recent ECB weekly consolidated financial statement reveals. The gold hoard was valued at 321 Euros per ounce at the beginning of the year and now has been revalued to 393 Euros per ounce; a cool gain of 22.4%. Had they just been sitting on their hands this would have resulted in a gain of some four billion Euros.
These numbers translate into gold holdings of 390.944 million ounces at the beginning of the year while the current holdings declined to 381.259 million ounces or 2.5 percent less.
I still have not come across an announcement about the renewal of the Central Bank Gold Sales Agreement. Read this post raising some speculation that the central banks are becoming less willing to sell off their gold to the Middle and Far East, which are the regions with the strongest physical demand.


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