LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Stocks Outperform Gold but not Stocks
By: Jordan Roy-Byrne CMT, MFTA

Market Bides Time Ahead of More Fed Twaddle
By: Rick Ackerman, Rick's Picks

Precious Metals Update Video: Gold waiting for FOMC tomorrow
By: Ira Epstein

Asian Metals Market Update: March-19-2019
By: Chintan Karnani, Insignia Consultants

Keynes Was a Vicious Bastard
By: Keith Weiner, Monetary Metals

SWOT Analysis: Goldcorp Chairman Ian Telfer’s $12 Million Retirement
By: Frank Holmes, US Funds

Gold and Silver Are Feeling Frisky
By: Dave Kranzler

Is The Stock Market Finally Topping?
By: Avi Gilburt

Why This Rally Smells Funny
By: Rick Ackerman, Rick's Picks

Technical Scoop: March-17-2019 -- Markets, Precious Metals & More
By: David Chapman

 
Search

GoldSeek Web

 
ECB starts reporting unallocated gold, but is it the whole story?

By: Chris Powell, Secretary/Treasurer, GATA

 -- Published: Monday, 7 March 2016 | Print  | Disqus 

Dear Friend of GATA and Gold:

Our friend the Dutch economist Jaco Schipper reports an increase in transparency about gold in the monthly reserve asset reports of the European Central Bank.

Since last August, Schipper notes, the ECB's monthly report has been distinguishing the allocated from the unallocated gold in the holdings of its member central banks, with less than 2 percent of the gold now being unallocated. That is, almost all the gold of the members of the European Central Bank has been specifically identified in vaults as being owned by them, and little of their gold has consisted of mere credits with other institutions:

https://www.ecb.europa.eu/stats/external/reserves/html/index.en.html

But the ECB continues to combine gold deposits and gold swaps in a single line in its reserve report and does not identify the counterparties of the swaps and the locations of the swapped gold, putting in question both the central bank's overall gold position and the degree of its continued intervention in the gold market, direct and indirect.

Indeed, the implication of the ECB's monthly report that it is nearly out of the gold market is contradicted by recent statements by Alexandre Gautier, the director of market operations for the Banque de France, who told meetings of the London Bullion Market Association in 2013 and 2014 that the Banque de France is trading gold for its own account and the accounts of other central banks "nearly on a daily basis" and that central banks lately have been managing their gold reserves "more actively":

http://www.gata.org/node/13373

http://gata.org/node/14716

Of course the ECB's new accounting was implemented subsequent to Gautier's statements, so the practices of the ECB and its members may have changed since then. Certainly the ECB's greater transparency is an improvement. But as long as the central bank combines gold deposits and gold swaps in a line item, failing to distinguish them, any funny business is possible. And surely the ECB knows a lot more about central bank intervention in the gold market than it is telling.

After all, the interview done by Kitco News last October with Peter Mooslechner, executive director of Austria's central bank, an ECB member bank, in which he acknowledged that Asian central banks were both acquiring gold and "using their reserves in trading in the market and intervening into the market," confirmed that central banks know very well what each other is doing in the gold market and why:

http://gata.org/node/15878

They're just not telling the rest of us, lest the world financial system start enjoying free markets and becoming more democratic.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *

Join GATA here:

Mines and Money Asia
Tuesday-Thursday, April 5-7, 2016
Hong Kong Convention and Exhibition Centre
Hong Kong Special Administrative Region, China

http://asia.minesandmoney.com/

Mining Investment Asia
Wednesday-Friday, April 13-15, 2016
Marina Bay Sands, Singapore

http://www.mininginvestmentasia.com/

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


| Digg This Article
 -- Published: Monday, 7 March 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.