World Gold Council (WGC) sees zero-market impact of International Monetary Fund (IMF?s) plan to sell gold in a structured and non-disruptive manner. The council clarifies that there will be no net addition to the overall gold supply.
The IMF has stated that its gold sales should be coordinated with current and future Central Bank Gold Agreements (CBGA) , whereby signatories have agreed to limit their gold sales to no more than 500 metric tonne annually. WGC hailed the news that the US Congress had passed the Military Supplemental Bill thereby finalising the process allowing the IMF to sell 403.3 tonne of gold in a manner that will have no impact on the smooth running of the international gold market.
?We are pleased to see that the IMF?s plan to sell gold in a structured and non-disruptive manner has gone through due political process without problem, this is a credit to the responsible behaviour of all parties involved in the process. These sales will not constitute any net addition to the amount of gold the market is already expecting from official sector sources as a whole, and therefore we anticipate zero market impact,? Aram Shishmanian, CEO, World Gold Council, said. ?We believe this announcement, if anything, will lead to positive sentiment among market participants as it clarifies that there will be no net addition to the overall gold supply,? Shishmanian said.
More recently at the G-20 Summit in April this year, heads of states proposed to use additional resources from sale of gold to provide an extra $4 billion for poor and indebted countries over the next 2-3 years.
This will not impact either the total level or the manner of gold sales.