Reserve Bank's gold sale cost us $5bn

nukz said:

Reserve Bank's gold sale cost us $5bn
THE Reserve Bank sold most of the nation's gold reserves more than a decade ago because the board believed its price would remain flat

They believed also the commodity would not play a role in a future financial crisis.

The decision to sell 167 tonnes of the bank's reserves has cost the nation about $5 billion based on today's soaring price of almost $1400 an ounce.

Read on: http://www.theaustralian.com.au/new...sale-cost-us-5bn/story-e6frg6nf-1225985231872

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RUSSIA led the gold bugs last year as it invested $US5.8 billion ($5.83bn) in bullion to diversify its reserves away from the US greenback.

According to figures from the World Gold Council, Russia bought 135.3 tonnes during 2010 at an average price of $US1224 an ounce.

The purchase lifted Russia from 10th to eighth on the list of central bank gold holdings with 784.1t, surpassing Japan and the Netherlands. Saudi Arabia said that its gold reserves had increased by 180t, worth $US7.7bn, to 322.9t, but this is thought to have been a historic purchase that had not been publicised.

Other large central bank gold buyers last year included Venezuela, which added five tonnes, and Bangladesh, which added 10t. The only significant seller was Germany, which disposed of five tonnes worth $US215.9 million.

The International Monetary Fund also completed a two-year process of selling 400t into the gold market. ....

Britain holds 310.3t of gold after Gordon Brown sold 395t in 1999. The sale achieved an average price of $US275/oz and raised $US3.9bn for the Treasury. Had the Bank of England sold the gold last year, it would have raised $US17bn.

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