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‘Malta buys 3,000 ounces of gold’ - FT
The Central Bank of Malta has bought some 3,000 ounces of gold, The Financial Times has reported today, as European central banks have become net buyers of gold for the first time in more than two decades.
18 September 2011, 12:00am
Karl Stagno-Navarra
Karl Stagno-Navarra
1 min read
According to the FT report, dealing in gold by Central Banks in the EU, especially within the eurozone, is the latest sign of how the turbulence in the currency and debt markets has revolutionised the bullion market.
The FT says that most of the buying in Europe was related to Estonia’s move to join the single currency bloc at the start of the year. The Estonian central bank bought gold to add to the ECB’s reserves, according to an ECB statement in January. Elsewhere, Malta bought 3,000 ounces.
“The purchases are minuscule compared with the size of the global gold market, but highlight a remarkable turnround from a wave of heavy selling by European central banks.”
The switch from large selling to buying has helped propel the gold price more than 25 per cent higher so far this year, hitting a nominal record of US$1,920 a troy ounce this month. The shift in Europe comes as central banks in emerging markets are also loading up on gold.
