Gold Market Lending

An inside look at one of the most opaque Central Bank activities, its impact on the gold market and how IMF policy can change the market to benefit all participants

Prepared by

Neal R. Ryan
Vice President
Director of Economic Research
Blanchard and Company, Inc.
12.01.06

If you have questions or comments, please email them to BERU@blanchardgold.com

• Situation Analysis
• Who Has the Gold to Lend?
• Gold Carry Trade
• Gold Holdings vs. Loans and Swaps
• What’s the Difference Between Gold Swaps and Gold Loans?
• Compare Supply/Demand Statistics with Estimated Loaned Gold Levels
• Do Central Banks Manage and Track Their Gold Loans?
• Is Central Bank Lending a Transparent Function in the Gold Market?
• Who Knows the Accurate Levels of Loaned Gold in the Market?
• Are Gold Loans Increasing or Decreasing?
• Bullion Banks: Smarter Than the Rest of Us or Just More Informed?
• Market Impact of Gold Loans and Swaps
• IMF Accounting for Gold Reserves: Issue Paper
• IMF Accounting for Gold Reserves: Committee Recommendation
• IMF Follow Up Paper: Treatment of Allocated/Unallocated Gold Held as Reserve Assets
• What is the Answer?
• When Will the Market Get Loaned Gold Information?
• Summary
• Blanchard and Company, Inc. Thoughts
• Appendix I
• Appendix II
• Appendix III