H/T Richard
BBC:
At current prices, 400m euros’ worth of gold amounts to about 10.36 tonnes of metal
Cyprus may sell off some of its gold reserves to help finance part of its bailout, according to reports.
An assessment by the European Commission says Cyprus must sell about 400m euros (£341m) worth of gold.
The country has already been forced to wind down one of its largest banks in order to qualify for a 10bn euro lifeline from international lenders.
Even with that bailout, it is predicted that the Cypriot economy will shrink by 8.7% this year.
Cyprus’s total bullion reserves stood at 13.9 tonnes at the end of February, according to data from the World Gold Council.
For Cyprus to even thing about selling off their gold reserves is a sign of how bad their economic crisis really is, this is a sign that things are about to get worse in Europe.
Max Keiser reported that the big merchants banks were selling gold to bring the price down, in anticipation of this move.
The price will drop lower if they do sell.
The big boys will sell gold now when it is high. When Cyprus sells & it goes lower, they will scarf it back up. At the end of the year they will have more gold and some profits.
And a lot more power if the world economy tanks.