opinion

Central bank gold: Secrecy to transparency

Kitco Media
By CPM Group
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In this presentation, Jeffrey Christian of CPM Group provides a historical explanation of how central banks have bought, sold, managed, and reported gold holdings over the past seventy-five years. He explains how gold moved through official reserves and has gone through several distinct periods or phases since 1950.

Jeff discusses the accumulation of gold by industrialized countries prior to 1971, the large-scale demonetization and gold sales that followed the end of the gold window, and the shift toward greater transparency in central bank policy overall and specifically toward gold beginning in the 1980s and 1990s. He also explains the origins of the European Central Bank Gold Agreement, the reasons behind the gold auctions by the Bank of England and Swiss National Bank, and why many popular claims about secret or unreported central bank gold buying are misleading.

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CPM Group

CPM Group is a commodities research, consulting, financialadvisory and commodities management firm providing independent research,analysis and advisory services related to commodities markets, corporate andproject finance, and the financial management of exposure to commodity orientedinvestments.

We started our business in 1986 predicated on the idea that commoditiesresearch and advice is best delivered by independent experts who do not work forbanks, brokers, mining companies, or any other entity that has interests thatcould conflict with the best interests of the clients receiving the research,analysis, and advice.

All of our work is driven by fundamental commodities research and economicanalysis. As we undertake our research into individual commodities markets wegather a tremendous amount of information and develop an enormous body ofextremely high quality, unbiased analysis of the markets and the companies thatare involved with individual commodities. The outputs of our research andanalysis take the form of research reports, specialized and targeted consultingrelated to these markets, financial advisory services ranging from corporate andproject finance structuring to equity introductions, and managing specificcommodities and investment positions for clients.

CPM Group continues to demonstrate the economic value and financial worth ofsuperior research, information, and analysis. Our research is based onmicro-economic analysis of the individual components of each commodity market,wedded with a top-down macro-economic analysis of the global trends affectingthese markets. We apply the results of that analysis to our research,consulting, and advisory services.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.