Daily Archives: November 17, 2011

Claire Jones

The dip in the price of gold in early autumn failed to do much to dampen demand from the central banks. In fact, their buying rocketed. This from the FT’s Jack Farchy:

Central banks made their largest purchases of gold in decades in the third quarter, as a sharp drop in prices in September accelerated the shift to bullion as a means of diversification.

The scale of the buying, at 148.4 tonnes on a net basis, was far bigger than previously disclosed, surprising some traders.

 

The report by the World Gold Council, industry lobbyists, on which the story is based confirms a few of Money Supply’s earlier suspicions about why central bank demand would to remain strong, or even rise, on the back of the dip in price. Read more

Ralph Atkins

German politicians and the Bundesbank have not softened their opposition to the European Central Bank taking a decisive role in the eurozone debt crisis. But one demand has been quietly dropped. A Europe policy programme agreed by Chancellor Angela Merkel’s Christian Democratic Union at a Leipzig party conference this week made no mention of boosting the Bundesbank’s influence at the ECB.

The proposal to give Jens Weidmann, Bundesbank president, votes in proportion to the size of the Geman economy had been touted by the country’s conservatives, who saw him being outmaneuvered by the ECB governing council’s 22 other members – especially over the its controversial bond purchasing programme. Read more