German Bundesbank Will Sell Only a Few Grains of Gold 2009/10

Tuesday, September 29, 2009

The German Bundesbank has announced it will sell a maximum of 6.5 tons of gold in the current fiscal year under the Central Bank Gold Sales Agreement (CBGSA.)
Germany sits on a hoard of 3,408 tons, the second largest gold stash behind the USA.
The Bundesbank has always fiercely rejected all attempts by politicians to close budget gaps through selling gold. It is the first CBGSA member to publicly announce its intentions for the running year.
The small sale of 6.5 tons will be almost exclusive used by the German mint to produce collectors gold coins.
A few weeks ago the German government admitted that part of Germany's gold hoard is on US soil, creating a minor tussle whether this is the right policy.
On a historical note France's ex president Charles de Gaulle sent a warship to New York in 1971 to pick all of Frances's gold holdings there and repatriate them to France.
Dubai had started repatriating its 114 tons of gold in May from London to Dubai.
According to German gold website Germany will offer its sales rights to other member nations or the IMF which wants to sell 403 tons of gold in the next few years. Ther IMF is not a part of the CBGSA.
Both China and Russia announced earlier this year that gold will play a vital part in its foreign currency reserves, fundamentally shifting the global importance of gold to the upside. During WW2 Germany was only able to fund its international purchases with gold as the Reichsmark was not honoured by any other government anymore.


Wikinvest Wire