What happens if Italy and Spain start selling their gold?

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RRJJ
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What happens if Italy and Spain start selling their gold?

As you might have heard, Italy and Spain are being pressured by Germany to start selling off some of their gold reserve.

http://www.businessinsider.com/berlin-pushes-italy-spain-to-sell-off-gold-2011-8

Do you think this is likely to happen and if so what will happen to the gold price? 

Edited by admin on 11/08/2014 - 06:31
So It Goes
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Future

First - no central bank is going to sell its gold.  C'mon - they know what's going on.

Second - nothing initially.  Gold would flow surreptitiously from weaker hands to stronger hands - nothing new.

Third - bullish in the future.  But then again, everything going on in the world is bullish for gold in the future.

Look ma - I can see the future :-) 

Desert Fox
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So It Goes wrote: First - no

So It Goes wrote:

First - no central bank is going to sell its gold.  C'mon - they know what's going on.

Second - nothing initially.  Gold would flow surreptitiously from weaker hands to stronger hands - nothing new.

Third - bullish in the future.  But then again, everything going on in the world is bullish for gold in the future.

Look ma - I can see the future :-) 

Man, You knocked that one out of the park! Lots of Hat Tips there!cool

They'll be fighting hard to hold on to their only valuable asset and if they have to sell it won't be at a discount.

Brotha Bob
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Maybe FUBM.

I would say either nothing will happen because it will be a central bank transfer only, or buy the dip opportunity. If either of the PIIGS sold their gold reserves, the end will only arrive faster. Buy the dip.

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ragandbone
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Positive spin

The other way to look at it would be that the ultimate form of payment is gold and that this would confirm to all the naysayers that gold is most definately money and the only form of money worth holding onto with an iron fist. If a central bank has to sell its gold it will be very reluctantly and payment as the last resort... very bullish for gold sentiment....

So It Goes
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Thanks Fox

I appreciate your kind words.  Turd and others have said the same thing numerous times - they deserve the kudos :-).

speconomist
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Just to provide some

Just to provide some information in case you're interested about Spain:

We sold most of our gold somewhere around 2004-2006 @ $500 because politicians and the governor of Bank of Spain thought that gold couldn't go any higher.

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