Central Bank to increase gold metal reserves
September 22, 2006
Few things this AM...with the lack of major price decreases during the London market in the last week, it looks like very little Central bank gold entered the market for sale this week after we had a major increase in sales volumes last week. We'll have confirmation of this on Tuesday, but if the market sees that CB sales were off by an order of 25% or higher from years past, prices will react accordingly and begin the bounce upwards.
Also, Russia has been flapping its gums about doubling their gold reserves in the past year. Looks like they're finally ready to get started.
Central Bank to increase gold metal reserves
RBC, 21.09.2006, Moscow 18:45:08. The Bank of Russia intends to increase the volume of gold metals in Russia's gold and foreign currency reserves, the Bank's First Deputy Chairman Alexei Ulyukayev told the State Duma budget committee today. The share of gold in the country's gold and foreign currency reserves is 3 percent at present. If the volume of gold metals increases, still its share will not raise, he noted.
The prices of gold and other precious metals have been rising lately but the market is correcting at present, Ulyukayev stressed. The gold price is now $580 per ounce, which is $80-90 lower than the record price. The metal prices are highly volatile at the moment, but the Central Bank has not imposed any limits on gold acquisition, he said.
Russia's gold reserves exceed 380 tonnes.
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