- World Gold Council Condemns Latest UK Gold
Auction
LONDON: 12 July 2000 - The result of today's auction of 25 tonnes of
the UK gold reserves - the seventh in a regular sequence - is a disaster
for both the British taxpayer and the international gold market, says
the World Gold Council.
"This proves what we have been saying all along," said Miss Haruko Fukuda,
chief executive of the WGC. "The government is engaged in a give-away
of one of the cornerstones of the UK's economic sovereignty. Just look
at the figures: in the morning's London fix, gold was priced at $282.85
per troy ounce, and the government then sold 25 tonnes at $279.75 an ounce,
$3.10 below the fix. The government has lost almost $2.5 million of taxpayers'
money in the space of one hour," added Miss Fukuda.
The WGC has long argued that it is wrong in principle to sell off 415
tonnes of the UK's gold reserves, leaving the country ultimately with
just 300 tonnes, which will represent just 7 per cent of the country's
total reserves. Today's result also demonstrates that the chosen method
of sale - via very high-profile auctions occurring at regular, bi-monthly
intervals - serves only to depress market sentiment, securing a very poor
deal for the Treasury. Other countries that have sold their gold - such
as Switzerland and the Netherlands - have opted for much more discreet
forms of disposal, through the Bank for International Settlements. If
the UK government insists on selling British gold, the UK should follow
their example and use the BIS or sell through the London gold fix.
- Ends -
Contacts:
Miss Haruko Fukuda, Chief Executive WGC 0207 930 5171.
Jill Leyland, Economics and Statistics Manager, WGC 0207 930 5171.
Tom Butler, Senior Consultant, Market Analysis, WGC. 0207 930 5171. |