Tag - Central Bank Gold

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Monday, December 10 2018

French central bank and JP Morgan team up to boost Gold Lending

What exactly is the partnership between JP Morgan and the Banque de France in the gold lending market? Given that the gold lending market is ultra secretive, we will most likely never know the specifics. But by partnering with JP Morgan, the Banque de France is partnering with one of the heavy weight bullion banks of the gold industry, a bullion bank with a finger in every pie.

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Saturday, December 8 2018

Central Bank silent over plans for Irish gold in UK

IRELAND'S Central Bank has refused to say if it plans to move almost €200m worth of gold bars from the vaults of the Bank of England as a result of Brexit, insisting that any such move would be "commercially sensitive".

The gold reserves have been held by its UK counterpart for a number of years, and the Central Bank has traditionally been coy on the precise details of the reserves, and the terms of the arrangement it has with the Bank of England.

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Friday, December 7 2018

Venezuela officials seek meeting with Bank of England over gold repatriation

Two high-ranking Venezuelan officials are traveling to London with plans to meet with the Bank of England over the repatriation of $550 million in gold held in the bank’s coffers, according to two sources with knowledge of the situation.

The government of President Nicolas Maduro is seeking to bring 14 tonnes of gold back to Venezuela because of fears it could be caught up in international sanctions on the country, sources told Reuters this month.

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Thursday, November 15 2018

Bank of England refuses to return 14 tonnes of gold to Venezuela

The reasons put forward by official sources in the Reuters and Times articles for why Venezuela can’t withdraw its gold from the Bank of England are clearly bogus. The more logical and likely explanation is that the US, through the White House, US Treasury and State Department have been liaising with the British Foreign office, HM Treasury to put pressure on the Bank of England to delay and push back on Venezuela’s gold withdrawal request.

However, these ‘British officials’ are creating a dangerous precedent that other central bank gold customers of the Bank of England around the world will be taking note of. Similar gold withdrawal requests from other central banks, especially those that hold gold loans and gold swaps and want allocation, could well precipitate a run on the physical gold stored in the Bank of England’s vaults.

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Wednesday, November 14 2018

Gold: Rising gold price vindicates RBI’s investment plan

The Reserve Bank of India’s gold purchase plan seems to be paying off as the monthly valuation gains have touched an eight month high with investor demand for a safe haven rallying the yellow metal.

The value of gold in the country’s foreign exchange reserves rose 1.7 per cent in three weeks from October 12 to November 2 at $20.9 billion. Gold prices rose 2 per cent during the same period.

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Monday, November 12 2018

Macron tries to take UK's gold crown as historic rivalry is reborn

Paris has vaulting ambitions to capture a share of the world gold trade from London, reviving its historic role as a top-tier power in the international bullion market.

The Banque de France has teamed up with JP Morgan to offer a full range of swaps, leases, and gold deposits for global central banks and sovereign wealth funds. Global reserve managers will be able to pledge bullion as collateral for deposits or for raising foreign currency on the Paris market.

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Wednesday, November 7 2018

Bank of England Refusing Venezuelan Request to Return $550 Mln in Gold

The Bank of England is refusing to release Venezuela's gold bars, worth about $550 million or £420 million, back to Caracas, with British officials understood to have referred to "standard" anti-money laundering measures, The Times reports, citing unnamed sources.

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Tuesday, November 6 2018

Venezuela seeks to repatriate $550 million of gold from Britain

Venezuela is seeking to repatriate about $550 million in gold bars from the Bank of England because of fears it could be caught up in international sanctions on the country, two sources with direct knowledge of the effort told Reuters.

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Monday, November 5 2018

Does the recent spate of Central Bank gold buying impact demand and price?

Since in general the central bank gold market is ultra secretive and exempt from all manner of reporting, there is often not even any proof of anything much in the central bank gold market nor even any evidence in a lot of cases that the claimed trades have even taken place.

There is also no evidence that this central bank gold buying has any effect on the international gold price despite what, for example an article such as “Buying by central banks & ETFs set to propel gold prices higher” claims. So its instructive to look at some of this central bank gold buying and ask to what extent it could impact overall gold demand and could it have any impact on the gold price.

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Wednesday, October 24 2018

Central Banks to Increase Gold Buying for First Time Since 2013

Central banks are set to increase their purchases of gold in 2018 for the first time in five years as eastern European and Asian countries seek to diversify their reserves.

Net purchases of gold by central banks are forecast to rise to 450 metric tons this year, up from 375 tons in 2017, according to consultancy Metals Focus Ltd. That will be the first increase since 2013, when banks boosted their holdings by 646 tons, the most for several decades.

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Saturday, October 20 2018

Here's How Hungary Reduced Risk Without Forfeiting Returns

It was this rich mining heritage that Hungary’s central bank evoked when it announced this week its decision to increase gold holdings tenfold, from 3.1 metric tons to 31.5 tons, taking gold’s share of total reserves to 4.4 percent.

Hungarian central bank governor Gyorgy Matolcsy described the move as one of “economic and national strategic importance,” adding that the extra gold made the country’s reserves “safer” and “reduced risk.”

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Friday, October 19 2018

Russian Gold Reserves

Russia adds 1.2m ounces of gold to it's reserves in September

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Tuesday, October 16 2018

In surprise move, Central Bank of Hungary announces 10-fold jump in its gold reserves

In view of the long-term national and economic strategy goals, the Monetary Council of the National Bank of Hungary has decided to increase the gold reserves of the country.

As a result, in October 2018 the Bank’s precious metal holdings were raised from the previous 3.10 tonnes to 31.5 tonnes, a tenfold increase. This is the first time that the Hungarian National Bank has bought gold since 1986.

Following the substantial increase in the Bank’s gold reserves in physical form, its repatriation has already taken place. The possession of precious metal within the country is in line with international trends, supports financial stability and strengthens market confidence in Hungary.

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Poland raises gold holdings to record high in September

Poland raised its gold holdings to the highest in at least 35 years, data from the International Monetary Fund showed on Monday.

The country increased its holdings by 4.4 tonnes from August to about 117 tonnes in September, a record, according to data going back to January 1983.

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Monday, October 1 2018

Central Bank Gold Buying Hits Highest Level in Six Years

Central banks have emerged as some of the biggest buyers of gold this year, with purchases hitting their highest level in six years, according to analysts at Macquarie.

Central banks have bought a total of 264 tonnes of gold this year, "by far the most at this stage of the year of any period in the last six years," the bank said.

While gold buying has been dominated by Russia, Turkey, and Kazakhstan, Poland also bought gold for the first time since 1998, Macquarie said.

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Sunday, September 23 2018

A change in central bank attitudes to gold

This is a major structural change in global central bank attitudes towards gold after decades of selling. Clearly the policy shift to maintaining stable gold holdings reflects broad central bank concerns about financial markets and geopolitics. With little in the current global economic and political environment to support any reason to change in this conservative position, it should provide long-term underlying support to gold prices.

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Wednesday, September 5 2018

RBI buys gold for first time in nearly a decade

The Reserve Bank of India (RBI) has bought gold for the first time in nearly a decade, signalling that the metal could be in demand as a store of value when returns and capital values of fixed-income bonds are declining in a rising rate environment.

The RBI added 8.46 metric tonnes of gold to its stock of holdings during the financial year 2017-18 that ended June 30, taking the level of gold reserves to 566.23 metric tonnes, according to its latest annual report.

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Thursday, June 28 2018

Why Russia and Turkey Are Such Gold Bugs

Their moves out of U.S. debt and into the precious metal could be precursors of a bigger global shift.

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Monday, June 4 2018

Gold and the Monetary Blockade on Iran

With Donald Trump close to re-instituting economic sanctions on Iran, it's worth remembering that gold served as a tool for skirting the the last round of Iranian sanctions. If a blockade were to be re-imposed on Iran, might this role be resuscitated?

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Good as gold: Turkey uses bullion to stabilise its economy

Turkey’s economy has been in a tailspin with an inflationary currency, but the country is using something rare to help stabilise itself: gold.

In late 2011, Turkey started to allow commercial banks to use gold instead of the Turkish lira for their required deposits at the central bank. These deposits are known as reserve requirements and help ensure that the banks are capitalised.

Over the past six-or-so years, Turkey’s central bank has accumulated an additional 400 metric tonnes of gold.

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