ARE THE U.S. AND OTHER CENTRAL BANKS SELLING GOLD

08 September 2010 | 06:32 Code : 20168 Geoscience events
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We are of the opinion that the World Gold Council is a competent body and that they do gather...

We are of the opinion that the World Gold Council is a competent body and that they do gather accurate information on ‘Official’ gold sales worldwide.   We also note that leasing is not selling just as swapping is not actually selling.   The figures published by the WGC tell us that the gold selling has stopped and that central banks, including China, are buyers.Yes, when gold is leased or swapped, the gold leaves the owners control, but unless the overriding agreement is broken the gold should return to the owner’s control.   It’s there that the main questions lie.   And it’s there that the statement may gain credibility.Many are convinced that leased gold or swapped gold is a cover for what in reality is a sale.   As a result many believe that the central bank holdings of gold are far less than published.   If such obligations do attach to the gold owned by a nation, then at best, it is ‘at risk’ and this should be clarified.   The risk of the gold not being returned does attach to that gold, because it lies under the control of an entity or person outside that bank.   That certainly weakens ownership control as we all know.


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