You are here
Here's a start: AP acknowledges central banks have 'immense pricing power' with gold
Gold Deal Ends Among European Central Banks
By David McHugh
Associated Press, New York
Friday, July 26, 2019
https://www.apnews.com/7080c56efead48c5a98410c4f63029f5
FRANKFURT, Germany -- The European Central Bank says it and 21 national central banks in Europe are letting an agreement regulating gold sales expire, saying the deal struck two decades ago to stabilize the market for the precious metal is no longer needed.
The ECB said today that the fourth Central Bank Gold Agreement would not be renewed when it expires Sept. 26.
The first such agreement was signed in 1999 amid concerns about the impact of uncoordinated sales by central banks from reserves mostly concentrated in rich European and North American countries as a legacy of the days when currencies were pegged to gold. Central banks agreed to coordinate transactions to keep the price from swinging excessively.
... Dispatch continues below ...
Glint Completes L5 Million Private Placement
and Welcomes Sprott as Strategic Investor
Company Announcement
Thursday, June 13, 2019
Glint Pay Inc. (glintpay.com), the first-mover company that enables physical gold to make instant payments using a debit Mastercard, today announced the completion of a private placement of L5 Million in London-based parent Glint Pay Ltd. The financing was led by Sprott, an alternative asset manager and a global leader in precious metal and real asset investments with approximately $8 billion in assets under management.
Founded in the United Kingdom in 2016, Glint established the first app-based account in February 2018 giving clients in Europe a low-cost way to buy, sell, and save physically allocated gold and for the first time instantly spend it via the Glint Mastercard anywhere Mastercard is accepted. Glint Pay then added multiple currency wallets, including U.S. dollars, British pounds, and euros in July 2018. The company is working on its launch into the United States. ...
... For the remainder of the announcement:
https://glintpay.com/en_us/glint-en_us/glint-completes-5-million-private...
The ECB said that the central banks that are part of the agreement have not sold significant amounts of gold for nearly a decade, eliminating the need for the deal.
At the end of 2018, central banks collectively held around 33,200 tons of gold, about one fifth of the gold ever mined, according to the World Gold Council. Those holdings mean central banks have immense pricing power in markets. The first agreement, also known as the Washington Gold Agreement, was preceded by abrupt swings in the gold price.
Signed during the annual meeting of the International Monetary Fund, that first deal placed a limit on the amount of gold that signatories could collectively sell in any one year. Other major gold holders, including the U.S., Japan, Australia, the IMF, and the Bank for International Settlements either informally associated themselves with the agreement or said at other times they would not sell gold. Prices rose. Gold prices have increased from $287.80 per ounce at the start of 1999 to $1,146.10 per ounce on Thursday.
Sales from the group of central banks reached 500 tons in 2005 but have since fallen sharply.
* * *
Join GATA here:
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Friday-Monday, November 1-4, 2019
https://neworleansconference.com/noic-promo/powellgata/
* * *
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:
