Carnage is widespread. Even the fabled and much touted NGD is off 7.5%.
Looks like we could be in for a flood of central bank selling, starting with Cypress and continuing on with some of the impoverished Baltic states being next in line. If Cypress is being urged to sell off gold to make good on their bad, some of the other Euro nations can't be far behind.
That's why I only hold a very small percentage of overall assets in gold miners. Then again, just about everything is being hit today, save for the fixed income portion and high percentage preferred issue.
You could be right that central bank along the periphery of Europe could be sellers of gold. But I would argue that for every seller there is a buyer. I think many of the creditor nations that under-own gold would be happy to pick up that supply. In addition, what added value would selling gold provide for a central bank during a time when the amount of fiat currency sloshing around is mind numbingly high. Gold as an allocation to a central banks balance sheet is extremely low in this era of debt.
What will selling $523M of gold provide the people of Cyprus? If anything, the people should demand a greater allocation to the yellow metal going forward.....