World Gold Council welcomes renewal of the Central Bank Gold Agreement reaffirming

first_imgAram Shishmanian, Chief Executive of WGC said on Friday: “The announcement is a clear endorsement of gold’s role in today’s global economic and financial architecture and a reflection of the success of the previous Central Bank Gold Agreements. The agreement to limit the sale of gold over the five year period to 2,000 t demonstrates that, at a time of continued market volatility and inflationary fears, gold’s unique investment qualities provide the necessary hedge and protection that central banks are seeking. The reduction in the annual ceiling on sales from 500 t in the current agreement to 400 t/y starting on September 27, 2009, reflects an acknowledgment of the fact that the central banks’ appetite for sales is diminishing. This is evident in the way that total sales under CBGA2 look set to fall well short of the ceiling the signatories set for themselves in 2004.”The decision to allow room under the agreed ceiling to incorporate the IMF’s proposed sale of 403 t demonstrates a willingness to help the IMF comply with the recommendations of the Crockett Report that IMF sales should represent no net addition to the quantity of gold the market is expecting from the official sector.last_img read more