3500 metric tons is only 112,447,680 Troy ounces. It's nothing to worry about. We have seen this before. They have already sold it. They sold it in the last four or so years to buyers from gold forwarders. The buyers sold it already, to pay the mines, and they now want to register the sale, so they say "they are going to sell it" There is nothing in their vaults. It's a sham. Australia did it, Holland did it, France did it, the US did it, now it's Germany's turn.
So why tell anyone they have sold it? For one thing they want to clean up the records. Every once in a while they have to reconcile their physical holdings. We all know that when banks are raided by armies and thieves for cash, they often don't have a sou. Vaults are empty, long ago loaned and sold. And this would not be the first time. Probably half the gold long ago was put up as collateral on foreign loans and sits in some clearing house, gathering dust on a foreign shore. Russia is on record with debts that are 150 years old they still pay interest on. Don't tell me they did not up collateral. Why not gold that was low priced?
One other reason for announcement is the classical short. If they have sold all that gold, they sold it to buy other gold at a higher price. It may be now that people who bought the gold, want delivery, anticipating higher prices. If they announce a major sale, they can fake the contracts and drive the price down. This will allow picking up production at low prices, and fulfilling the contracts. They don't have to ever "sell" all the gold, just threaten to, to meet their short term obligations.
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