GERMANY BUYS GOLD FOR THE FIRST TIME IN 21 YEARS




Robert HARNEIS -TDO- (FRANCE) - German gold reserves rose to 108.34 million ounces in September from 108.25 million ounces last month

It was the Germany's first gold purchase since 1998 and while the amounts are small at 90,000 troy ounces, it highlights the Bundesbank and German concerns about the global monetary system and euro itself as Christine Lagarde takes over at the European Central Bank.

International Monetary Fund (IMF) data shows central banks continued their 2019 gold buying moves in September with the UAE, Kazakhstan and Belarus all adding to their gold reserves

Turkey's gold reserves increased by another one million ounces in September as tensions with the U.S. and geopolitical risks escalated

Central bank gold reserves are normally reported on in the financial media but the German gold purchase was initially only covered on the Bloomberg terminal. It is a particularly interesting development given the growing distrust of the Euro amongst German economists and business people.

The move follows the equally little discussed change of policy ending the Central Banks gold Agreement (CGBA) also known as the Washington gold agreement, to limit sales of gold. The agreement came to an end on 26 September 2019. It was originally put in place in 1999 with a view to coordinating the sale of gold. It has been renewed in 2004, 2009 and 2014, each time with less strict conditions.