Here We Go: Cyprus To Sell €400 Million In Gold, About 75% Of Its Total Holdings, To Finance Part Of Its Bailout
Submitted by Tyler Durden on 04/10/2013 - 10:38
Curious why every bank and their grandmother, and most recently Goldman today, has been lining up to push the price of gold as low as possible? Here's why:
•CYPRUS TO SELL 400 MLN EUROS WORTH OF GOLD RESERVES TO FINANCE PART OF ITS BAILOUT - TROIKA DOCUMENTS - RTRS
Or about 10 tons of gold. But... the bailout was prefunded and there was no need to provide any additional cash? What happened: was the deposit outflow discovered to have been even greater than the worst case scenario and thus Cyprus needed even more cash? As for the buyers? We will venture a guess: central banks buying at the lows.
Finally: congratulations Cypriots. You are now handing over your gold for the one time, unbeatable opportunity to remain a vassal state to the Eurozone. But at least you have your €.
How desperate are these faulkers? Completely agree with you guys. Bogus early release of Fed minutes. bogus Cyprus gold sales , and Goldmans negative gold call.
Cyprus Denies Gold Sale
Submitted by Tyler Durden on 04/11/2013 - 09:01
The Central Bank of Cyprus (CBC) said last night however that selling the island’s gold had not been on the table. “Such an issue has not been raised, has not been discussed and is not being discussed at the moment,” CBC spokeswoman Aliki Stylianou said. Stylianou added that sale of the gold was a matter handled exclusively by the CBC board. A spokesperson for the Central Bank of Cyprus told the Cyprus News Agency (CNA) that reports of the $523 million gold sale have not been, “raised, discussed or debated,” with the bank’s board of directors. The Central Bank of Cyprus denied the gold sale after reports on Reuters said that Cyprus officials had agreed to sell around 400 million euros in excess gold reserves to contribute to the country's bailout. Stylianou, the spokesperson for the Central Bank of Cyprus said that the gold sale was, “never discussed nor are there current or future plans to do so on the board’s agenda.” Reuters based its story on a draft report from the European Commission which assessed the nation's financing needs.
Snooky_ My math says that (400 million Euros) is about nine ton of gold. Using the common figure of 2,500 tonnes mined annually worldwide, that would amount to ~7 tonne per-day. So, if I am correct we are talking about less than one and one-half day of production. Not very significant when compared to the ~600 tonnes they talk about regarding China's annual gold buying. A while back the IMF sold 400 tonnes to thwart the rise in gold prices...didn't work. Thinking positive (as I usually do) , the reminder that gold can serve a very important sovereign reserve purpose will send a message to others...like Japan, that need to print hard while still maintaining some assets to back their currency.