The fourth CBGA, which expires on 26 September 2019, was signed by the ECB, the Belgian National Bank/National Bank of Belgium, Deutsche Bundesbank, Eesti Pank, the Central Bank of Ireland, the Bank of Greece, the Bank of Spain, the Bank of France. Banca d`Italia, Central Bank of Cyprus, Latvijas Banka, Lietuvos bankas, Central Bank of Luxembourg, Central Bank of Malta, Nederlandsche Bank, National Bank of Austria, Banco de Portugal, Banka Slovenije, N`rodné banka Slovenska, Suomen Pankki – Finlands Bank, Sveriges Riksbank and the Swiss National Bank. Western European central banks, in particular, held and held large stocks of gold in their reserves. Those in the Netherlands, Belgium, Austria, Switzerland and the United Kingdom had already sold gold or announced their intention. Others have benefited from the growing demand for borrowed gold and have intensified their use of credit, swaps and other derivatives. The increase in credit has generally led to the sale of additional gold, which means that the trend has continued to supply the market. At present, gold has a universal status as the safest way to diversify the investments of a consumer holding company such as equities. In the 1990s, sporadic sales by European central banks, which hold some of the world`s largest gold hordes, were often carried out behind closed doors, prices fell and the metal retained stable reserve status. FRANKFURT, Germany (AP) – The European Central Bank says it and 21 national central banks in Europe are expiring an agreement regulating the sale of gold.
In total, central banks bought 651 tonnes of gold in 2018 for nearly $30 billion. This corresponds to the unrivalled confidence that gold enjoys as a stable asset. It is therefore clear that the gold market has really developed in terms of maturity, liquidity and investor base. “The agreement addressed the concerns of the gold market after the UK Treasury announced that it was selling 58% of the UK gold reserves through Bank of England auctions, with the prospect of significant sales by the Swiss National Bank and the possibility of ongoing sales by Austria and the Netherlands, as well as proposals for IMF sales. In particular, the UK`s announcement had severely destabilized the market because it had been announced in advance, unlike most other European sales by central banks in recent years. Sales from countries such as Belgium and the Netherlands had always been announced discreetly and after the event. The Washington and EU agreement was therefore considered at least as a ceiling for European sales.  At that time, central banks held almost a quarter of the total gold, estimated at about 33,000 tonnes in September 1999, and held a very influential position in the gold markets. Surprisingly, during the CBGA era, Western central banks did not accumulate gold as quickly as their Southeast Asian counterparts. Countries such as Russia, China and Turkey have bought gold and transferred their reserves to historic levels. With the expiration of the CBGA, some of them are expected to get their hands dirty in the gold markets. To learn more about Novem, visit: novemgold.com Novem Gold is a matter of transparency and reliability unmatched for the gold trade. This is the essence of blockchain technology.
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