Precious Metals Gain as Cyprus Back-Tracks on Selling Reserves
London Gold Market Report
From Adrian Ash
Tuesday, 16 July 2013
PRECIOUS METAL prices rose Tuesday morning in London, after the finance minister of Cyprus said selling some of the debt-laden Mediterranean island’s gold reserves was “only an option” for raising cash.
“The possibility of selling gold is known, but only as an option,” Harris Georgiades told journalists in Nicosia.
“It will be considered, when the time comes, with options, or rather, all other options.”
Last week the Cypriot president Nicos Anastasiades said that “I want to believe there will never be such a need” for selling some gold reserves.
“The issue is not being discussed by the government, it is a responsibility of the central bank,” he was quoted by Reuters.
Mid-April’s proposal that Cyprus should sell some of its small gold reserves saw the metal drop more than 15% over the next two trading days.
Despite holding only 13.9 tonnes of gold bullion, the idea was seen by some analysts and traders as “the thin end of the wedge” for other debt-laden countries in the Eurozone.