Armin Hohenadler

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). 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 in attendance. [1] The second version of the agreement was signed in 2004 and the agreement was renewed in 2009. The implications are important when each central bank takes independent measures in the market. If you combine this with a Stuttering European economy, gold might need a strong race. The slowdown in the German economy means that central banks could consider easing mechanisms to contain the flow. Since 1999, the global gold market has grown significantly in terms of duration, liquidity and investor base.

The price of gold has quintupled over the same period. The signatories have not sold significant amounts of gold for nearly a decade, and central banks and other official institutions in general have become net buyers of gold. 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. After extending the agreement by 5 years in 2014, the signatory banks agreed in 2019 not to renew the agreement, arguing that they had not sold large quantities of gold for some time. [7] Indeed, their sales had gone from the limit agreed in 2007 to almost zero in 2012 and remained very low thereafter. [8] To learn more about Novem, check out: novemgold.com FRANKFURT/LONDON, July 26 (Reuters) – European central banks have abandoned a 20-year deal on coordinating their gold sales and say they have no plans to sell large quantities of metals, the European Central Bank (ECB) said on Friday. In order to clarify their intentions regarding their gold stocks, the signatory institutions make the following statement: Central banks undertake to be the managers of stable markets, in particular when it comes to their own investment behaviour. . . .