Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

IMF study in 1999 found 80 central banks lending 15% of official gold reserves

IMG Auteur
Published : December 10th, 2012
659 words - Reading time : 1 - 2 minutes
( 1 vote, 5/5 ) , 1 commentary
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
1
comment
Our Newsletter...

 

 

 

 

A study by the International Monetary Fund in 1999, obtained last week by GATA's researcher R.M., reported that more than 80 central banks had lent 15 percent of official gold reserves into the market and that central banks then lending gold included the German Bundesbank, the Swiss National Bank, the Bank of England, the Reserve Bank of Australia, and the central banks of Austria, Portugal, and Venezuela.

The IMF study, commissioned as the agency pondered selling some of its own gold, emphasized the lack of transparency in the gold market and the secrecy demanded by central banks.

"Information on the gold market is patchy," the study said. "Transactions are characterized by a high degree of secrecy. Apart from the relatively small amount of open trading on exchanges, gold trades are private, over-the-counter transactions, and little is reported on these transactions. ... Official information on gold lending is virtually nonexistent."

As a result, the IMF study said, its information was "largely drawn from private sources."

Predictably enough, the study said "the increased mobilization of central bank reserves through gold lending operations has had a depressing influence on the spot price for gold since on-lent gold is usually associated with sales of gold in the spot market."

Indeed, just a year earlier, urging Congress not to regulate financial derivatives, Federal Reserve Chairman Alan Greenspan had disclosed that controlling the gold price was the primary objective of gold lending: "Central banks stand ready to lease gold in increasing quantities should the price rise."

(See: http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm.)

Further, the IMF study said, gold lending had caused central banks to become active in the gold derivatives market with bullion banks and gold producers, "selling through forwards and options."

In turn, "bullion banks have made efforts to secure and consolidate long-term relationships with central banks."

"The number of countries with official-sector involvement in the gold lending market is now estimated to have reached over 80. The outstanding amount of gold lending provided by the official sector by end-1998 amounted to nearly 15 percent of official gold holdings of all central banks. The share of industrial countries in the stock of total official gold lending rose from 33 percent at end-1995 to 46 percent by end-1998 as some industrial-country central banks increased their lending, while new lenders, such as the Bundesbank and the Swiss National Bank, entered the market."

Thirteen years later it seems likely that the proportion of central bank gold reserves that has been lent into the market is substantially higher, as Western central banks continue to demand secrecy for their gold lending even amid growing concerns about the security of their gold reserves vaulted abroad.

With so many central banks lending so much gold in secret to financial institutions whose primary talent lately has been shown to be rigging markets, who but the usual agents of disinformation still can deny that the gold market is manipulated precisely to prevent the world from enjoying free markets generally?

The IMF's 1999 study of gold lending has been posted at GATA's Internet site here:

http://www.gata.org/files/IMFGoldLendingFullStudy1999.pdf

Your secretary/treasurer surely cannot have perceived everything of significance in the study and so would be grateful to receive comments on it by e-mail at CPowell@GATA.org.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA here:

Vancouver Resource Investment Conference
Sunday-Monday, January 20 and 21, 2013
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/vancouver-resource-investment-confer...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

 

 

Companies Mentionned : Bullion | Gold Holdings |
Data and Statistics for these countries : Australia | Austria | Canada | Portugal | Venezuela | All
Gold and Silver Prices for these countries : Australia | Austria | Canada | Portugal | Venezuela | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Chris Powell is the secretary of the Gold Anti-Trust Action Committee (GATA) which has been organized to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.
WebsiteSubscribe to his services
Latest comment posted for this article
When you let the cat out of the bag don't be sure it will return home. Never the less, the reported piling up of gold reserves by all central banks, their policy not to sell any and this under hand activity of lending are going to seriously impact gold p  Read more
Papli - 12/10/2012 at 11:21 PM GMT
Top articles
Latest Comments
First Report since April, 2014
05 FebAndy_K1
Jason, One of your articles written way back is one of the reasons I started paying attention to silver and shortly thereafter started to ...
Something has Changed in Gold St...
06 Febneville
No nothing strange has happened in GOLD stocks....absolutely nothing.....The fact of the matter is that you byrne have been playing the man and...
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.1
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
LBMA Silver “Price”: A Perfect S...
03 FebS W.
There is no doubt that the Comex can be used as a casino for those who want to trade Silver up/or down or maybe some just wish to take a small punt...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
Bron refuses to EVER admit this market is a Casino and the disconnect between Paper and Physical is a big clue to this
LBMA Silver “Price”: A Perfect S...
30 JanS W.
Usually I enjoy Bron's take on things,but to be perfectly honest, I can't understand 95% of what he his on about here. I get the feeling that h...
ANOTHER NAIL IN THE U.S. EMPIRE ...
30 JanDemosthenes0
Very naive and pretentious article! The author thinks he knows everything and yet knows next to nothing. Shale gas producers are neither stupid n...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.32+0.00%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 50.90-0.59%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 21.63-4.55%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 7.08-3.54%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 50.90-0.59%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 50.90-0.59%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 21.63-4.55%Trend Power :
Corporate news
Comments closed
  All Favorites Best Rated  
When you let the cat out of the bag don't be sure it will return home. Never the less, the reported piling up of gold reserves by all central banks, their policy not to sell any and this under hand activity of lending are going to seriously impact gold prices going forward and positively finally.