11-04-2013, 10:52 AM
Here we go again. Announcing it's intent to sell it's gold reserves simply allows the market price to be adjusted lower prior to the sales. For me, this is the Eurozone's intention. Deflate the gold price even further.
It's a trend that began with Gordon Brown announcing his intention to sell of 400 tonnes of Britain's gold reserves in 1999. Prior to that any intention was a closely guarded secret in order not to tip off the market in advance. Brown's sale took place when the gold price was at a 20 year low. He recouped £2 billion through the sale at $300 an ounce. It then spiked to $1900 an ounce less than 10 years later.
It's a trend that began with Gordon Brown announcing his intention to sell of 400 tonnes of Britain's gold reserves in 1999. Prior to that any intention was a closely guarded secret in order not to tip off the market in advance. Brown's sale took place when the gold price was at a 20 year low. He recouped £2 billion through the sale at $300 an ounce. It then spiked to $1900 an ounce less than 10 years later.
Quote:Cyprus to sell gold reserves to help fund bailout
Cyprus is to sell off much of its gold reserves to help finance part of its bailout.
An assessment by the European Commission says Cyprus must sell about 400m euros (£341m) worth of gold.
The country has already been forced to wind down one of its largest banks in order to qualify for a 10bn euro lifeline from international lenders.
Even with that bailout, it is predicted that the Cypriot economy will shrink by 8.7% this year.
Cyprus's total bullion reserves stood at 13.9 tonnes at the end of February, according to data from the World Gold Council.
At current prices, 400m euros' worth of gold amounts to about 10.36 tonnes of metal.
The sale will be the biggest bullion sale by a eurozone central bank since France sold 17.4 tonnes in the first half of 2009.
European finance ministers meet in Dublin on Friday to discuss the Cyprus bailout.
Analysts say it is very unlikely that other European Union states will become big sellers of the precious metal.
Portugal holds 382.5 tonnes of gold, worth some 14.76bn euros at current prices, in its reserves, while Spain's holdings stand at 281.6 tonnes, worth 10.8bn euros.
Italy is the world's fourth-largest gold holder, with 2,451.8 tonnes, worth 94.6bn euros.
The shadow is a moral problem that challenges the whole ego-personality, for no one can become conscious of the shadow without considerable moral effort. To become conscious of it involves recognizing the dark aspects of the personality as present and real. This act is the essential condition for any kind of self-knowledge.
Carl Jung - Aion (1951). CW 9, Part II: P.14