A report by GFMS for Societe Generale suggests the volume of Central Bank gold sales this year is likely to be among the lowest on record.
In a report released Monday, precious metals consultancy GFMS, for Societe Generale, looked at the recent rate and volume of gold sales from official sources and concluded that in the first half of the current year the net sales volume was a relatively minuscule 39 tonnes - down a massive 73% year on year. Indeed in the second quarter, GFMS estimates that banks were net buyers of gold after being net sellers in the first quarter.
In effect, the majority of these sales came from within the Central Bank Gold Agreement, with its signatories selling some 92 tonnes, but this was offset by net purchases from Central Banks and institutions in other countries which turned out to be net buyers of around 56 tonnes. There were also a few tonnes of sales from banks outside the CBGA. GFMS notes that all these figures may be subject to alteration due to the lag that often exists between Central Bank activity in the gold market taking place and it being identiﬁed....MORE