Regal Group International: Gold disposals by central banks the lowest for the last year.

Sept. 27, 2010 - PRLog -- According to data recently released by the World Gold Council and available to Regal Group International, the International Monetary Fund and central banks only sold around 94,5 metric tons of gold in the last year, the lowest amount under an 1999 agreement.

The IMF sold off 88.3 tons and Eurozone banks, 6.2 tons, led by Germany, Greece and Malta. The eurozone figures reflect a 96 percent drop from last year’s 142 tons.

Regal Group International's research showed that gold is moving towards its tenth consecutive annual advance, its longest winning streak since at least 1920, prompting central banks internationally to increase their gold reserves. The data shows that combined central bank holdings have increased in every quarter since the second quarter of 2009.

Over a decade ago the Central Bank Gold Agreement came into being over concerns that uncoordinated bullion selling was able to destabilize the market and drive prices down .At the time of the announcement of the agreement gold dropped from a then-record of $850 an ounce in 1980 to just over $253 an ounce in February 2001. The metal’s price has soared to a record $1,300 this month.

Signatories to the most recent accord, the 3rd of 5 years, are limited to combined annual sales of 400 metric tons, a drop from 500 tons in the previous 5 year accord. Regal Group International can confirm that under the previous accord, sales dropped to only 157 tons in the final year, and eurozone sales have steadily dwindled every year since 2006.

Among the signatories to the latest World Gold Council agreement are the European Central Bank, Belgium, Germany, Ireland, Greece, Spain, France, Italy, Switzerland Netherlands Portugal and Austria.

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