...but central banks still selling...

摘要

While the incentive to lend gold has lessened, central bank are still selling gold, a path made more attractive by higher gold prices. Although the UK auctions have ended, the remaining established European sellers, most notably the Swiss, will continue to fully fill the 400t/y annual limit of the Euro-15 bank pledge. Having already dipped its toe into gold disposals via commemorative coin issues, the German Bundesbank President Ernst Welteke has again strongly hinted that it will probably be a more significant gold seller once the current pledge expires in September 2004. For the second time in little over a month, Welteke said that the Bundesbank might consider selling part of its gold reserves to reinvest the proceeds in shares as well as bonds. Such talk reinforces the view that Euro-zone central banks have become mere asset fund managers from 1 January 2002 with the introduction of the euro, with the ECB now performing the function of currency defender. Euro-zone national central banks, gradually more motivated by financial performance, will look to diversify portfolios away from gold, with many overly-weighted towards gold (see In the news).