You are here
Monetary forum's 'Seven Ages of Gold' report sees metal regaining status
Seven Ages of Gold
From the Official Monetary and Financial Institutions Forum, London
Monday, September 19, 2016
http://www.omfif.org/analysis/press-releases/seven-ages-of-gold/
Central banks are turning back to gold purchases in line with a century of practice between 1870 and 1970. This has restored the yellow metal as a central element of monetary management after four decades of attempted demonetization, according to a new report from the Official Monetary and Financial Institutions Forum.
Annual net gold purchases of 350 tonnes a year by world central banks over the past eight years have returned to the 100-year average up to 1970 -- reflecting the metal's renewed attractiveness as a safe haven asset in an environment of uncertainty and low or negative interest rates.
... Dispatch continues below
K92 Mining Shows What 'Fast Track' Really Means
Company Announcement
By Kevin Silva
Market One Media, Vancouver, British Columbia, Canada
via Business News Network, Toronto
September 18, 2016
"Fast-tracking" is an overused phrase in the mining sector. But K92 Mining Inc. (TSX.V: KNT) has demonstrated exactly what that concept means.
Less than four months after going public on May 25, the company has completed additional financings totaling $18.5 million. It also refurbished the mill and mine facilities with enhanced processing capacity and has two drills turning onsite. With all this accomplished, production looks to be just days away.
"The technical team on site has done an excellent job with the production restart, and we are on schedule and on budget," says Director and Chief Operating Officer John Lewins. "With that focus on track, and with the enhanced financial flexibility resulting from our recent financings, we are now looking to target a resource expansion that we believe exists."
K92 has under-promised and over-delivered. ...
... For the remainder of the announcement:
http://www.bnn.ca/k92-shows-what-fast-track-really-means-1.568196
The OMFIF research document -- the "Seven Ages of Gold" -- contains detailed statistics plotting long-run changes in central banks' policies on buying and selling gold over seven distinct periods during the past two centuries, each lasting an average of around 30 years.
The latest "rebuilding," Period VII, has been underway since the financial crisis in 2008. In these eight years central banks in both developed and developing countries have shown a new fondness for the yellow metal, rebuilding gold's importance as a bedrock of most countries' foreign reserves.
Central banks have been net bullion buyers every year since 2008, adding more than 2,800 tonnes or 9.4 percent to reserves. Developed countries (accounting for the most official holdings) have been conserving stocks, while developing countries led by China and Russia have been building them up.
This is the longest protracted spell of gold accruals since 1950-65, when central banks and treasuries acquired a net total of more than 7,000 tonnes during the economic recovery after the Second World War.
Developments since 2008 mark a powerful change from the "sales," Period VI, in 1998-2008, when central banks, particularly in developed countries including the United Kingdom, the Netherlands, and Switzerland, were unloading bullion holdings. This is also in sharp contrast to the "demonetisation," Period V, in 1973-98, when gold's role was in limbo after it was officially phased out of the monetary system in 1971-73.
Central bank gold transactions have often been somewhat disassociated from the gold price. Central banks were net sellers over Periods V and VI, four decades of fluctuating but generally rising bullion prices. The latest period since 2008 has been a time of sharp price swings in the $1,000-$1,600-per-ounce range, but the eight-year switch to central bank purchases appears to have been a factor behind the price recovery since 2015.
To request a PDF of this report, please email editorial@omfif.org stating your name and institution.
* * *
Join GATA here:
New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana
http://neworleansconference.com/wp-content/uploads/2016/08/2016_Powell.html
Help GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:
http://www.goldrush21.com/order.html
Or by purchasing a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
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:
To contribute to GATA, please visit:
