Colombia´s central bank sells almost 10 tonnes of gold

Retail investors aren't the only ones benefiting from the gold rally. According to media reports, the Central Bank of Colombia sold around two thirds of its gold reserves. The central bank's timing, however, was somewhat inconvenient. According to the bank's reserve data, it sold 9.7 tons of gold for $ 475 million in June, representing 67% of its precious metals holdings. The sale came two months before the market pushed prices to an all-time high of over $ 2,000 an ounce. According to the London Bullion Market Association, the price of gold averaged around $ 1,734 an ounce in June, up 14% since the start of the year. Gold rose another 18% over the past two months before there was significant volatility and profit taking. While Colombia is the youngest central bank to hit the headlines with the biggest gold sales this year, it isn't the only one trying to capitalize on soaring Gold Prices. According to the data compiled by the World Gold Council, the euro area with 2.8 tons of gold, Germany with 2.9 tons, Kazakhstan with 7 tons and Mongolia with 5 tons have been among the biggest sellers this year. However, the central banks remain net buyers of the precious metal. The buying speed is well below the record levels of 2018 and 2019. Although central banks' appetite for gold has diminished, the World Gold Council believes this sector will remain a major pillar of the market. In June, the World Gold Council conducted its third annual central bank survey on gold. According to the results, 20% of surviving central banks said they wanted to buy gold this year, up significantly from 8% in 2019. The survey also found that 88% of central banks view negative interest rates as a relative investment decision to hold gold. Although the Colombian central bank may not have sold its gold at the top, its timing was much better than that of the UK government. Between 1999 and 2002, the UK government sold 401 tons of gold - from its 715 tons inventory - at an average price of $ 275 an ounce.