Central Bank Agreement On Gold

Gold sales under central bank gold agreements (tons) The Washington Gold Agreement was signed on September 26, 1999 in Washington, D.C. at the annual meeting of the International Monetary Fund (IMF), and U.S. Treasury Secretary Lawrence Summers and Federal Reserve Chairman Alan Greenspan were present. [1] The second version of the agreement was signed in 2004 and the agreement was renewed in 2009. The Contracting Parties no longer see the need for a new agreement. «Since 1999, the global gold market has undergone considerable changes in terms of duration, liquidity and investor base,» the ECB said. The price of gold has also risen significantly since 1999. In addition, central banks have not sold significant amounts of gold in the last ten years, so the volume of contracts is far from exhausted (see chart). Originally published in blog.novemgold.com on October 21, 2019. In the 1990s, sporadic sales, often made behind closed doors by European central banks that hold some of the world`s largest gold reserves, drove prices down and undermined the metal`s status as a stable monetary reserve. In times of uncertainty, central banks continue to increase their gold stocks. Although gold prices are solid, it is unlikely that the central banks concerned will abruptly liquidate their holdings. Gold had served as silver for thousands of years, until the abandonment of the gold standard for a Fiat monetary system in 1971.

Since then, gold has been used as an installation. Gold is often considered a commodity; However, it is more of a currency. The yellow metal is very weakly correlated with other raw materials and is less used in industry. .