The Swiss National Bank, Switzerland’s central bank, just announced plans to sell 250 metric tons of gold over the next two years. The gold market reacted with a yawn, actually posting higher prices as the news spread, and appropriately so.
The sales will be within the Central Bank Gold Agreement, which limits sales by fifteen European central banks to 500 metric tons a year. Over the next two years, as the Swiss sell, they will sell annually only 125 tons of the allowed 500 tons. This is gold that the market had already expected to be sold.
Further, it should be noted that between 2000 and 2005 the Swiss central bank sold 1,300 tons, and during those five years the price of gold more than doubled, evidence that the Swiss have no crystal ball when they buy and sell gold.
Resourceinvestor.com has posted an article with still more commentary on the Swiss National Bank announcement.