The End Of Sanctuarization Of Banque De France’s Gold : New Evidence

My last article on the end of sanctuarization of the Banque de France’s gold grabbed a lot of attention, drawing over 20 000 readers and getting nearly 500 re-tweets. However, this news hasn’t made it to the main stream media – maybe it sounded too much like a conspiracy theory (a ridiculous accusation, and I challenge anyone to find any trace of that in my eight books; I only use public data and known sources). So let’s get back to this important issue. 

This information – the creation of a gold market between Banque de France and JP Morgan – was dispatched by Reuters on November 12. And there was no accompanying statement to the news, which is a little bizarre, denoting a troubling taste for secrecy. The primary source for Reuters is an article by Sylvie Goulard, second deputy governor of the Banque de France, in the October Alchemist magazine. Since we have free access to it, let’s read it.

First of all, an observation: 

"Since the 2008 financial crisis, there has been renewed interest in gold from reserve managers. Indeed, gold confirmed its status as a safe haven and also emerged as a very good asset for diversification, given its low correlation to other asset classes." (page 6)." 

This is so true.

Sylvie Goulard goes on:

"Building on its long experience in managing its gold reserves, in 2012, the Banque de France began to extend its range of gold services to reserve managers. In addition to offering custody of physical gold in its vault in Paris, the Banque de France can buy and sell gold on the spot markets for its institutional customers, using its execution expertise."

Announcing the creation of this gold market means they will be offering gold swaps and leases and be no more limited to the spot market.

Said services are being offered to foreign central banks that are already storing all or part of their gold in Banque de France's vaults (the list is kept secret). Is it also the case of Banque de France’s own gold? As Sylvie Goulard explains:

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