Quick update on European Central Bank sales
September 26, 2006
Just a quick update with more to follow, but the European Central Bank updated sales totals for the past week this morning (this was the last week of the calendar year for sales to go through for the Gold Agreement, sales can start again this week for next year).
At first blush it looks like there were only 12 tonnes of gold sold. This means that the bank selling was short over 100 tonnes. This isn't a minor miss. 20% of the gold that countries are allowed to sell under this agreement on an annual basis DID NOT get sold this past year.
This is a major development for the gold market. One more major source of supply is drying up. Now we need some investment demand to kick in over the next coming weeks and we'll be off to the races.
|
