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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (47821)	8/21/2007 5:21:01 PM
From: Rocket Red	Read Replies (1) \| Respond to of 78431

LONDON - Amidst reports today that the Swiss Central Bank sold no less than 34.1 tonnes of gold during the month of July - and Mineweb's earlier report of the Spanish Central Bank selling 25 tonnes, it is apparent from Central Bank Gold Agreement figures that Agreement signatories sold a total of 67 tonnes of gold during July, with the other 8 tonnes arising from smaller sales by other unspecified Central Banks. Switzerland announced relatively recently that it planned to sell 250 tonnes of gold by the end of the 2009 sales period, but the level of sales in July exceeded expectations. If it carries on selling at this rate, the Swiss Central Bank will have offloaded its 250 tons by the end of January next year! In part the high volume of sales in July by the Swiss may be to take advantage of the remaining shortfall of sales under the CBGA so far this year. These have totalled 353 tonnes up until the end of July, leaving the option open to the banks to sell a further 147 tonnes in the remainder of the Agreement which ends on September 26th. This would mean that to sell the full 500 tonnes allowed for under the CBGA, around 74 tonnes a month could be released during this month and next - a total which had been previously been considered unlikely by market followers. But, with Spain continuing to be a relatively heavy seller, and the Swiss just starting their sales programme, it is possible that fairly close to the full 500 tonnes could be released in this Agreement year. Overall, even if some of these sales are picked up by other Central Banks which may be building up gold reserves, the level of sales serves to be a dampener on the overall gold market, which may well account for the rise in gold price anticipated by some not having occurred. That gold has held up so well, though, despite the high sales levels should be seen as long term positive for the yellow metal.