Spain "Hemorrhaging" Gold to Stave Off Banking Blowout

6 de junio de 2007

<body><div id="article"><tr><td height="23" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Spain "Hemorrhaging" Gold to Stave Off Banking Blowout</h1><p>June 6, 2007 (LPAC)-- An ongoing sell-off of gold stocks by the Spanish central bank has provoked fears that the sales are needed to prevent a blow out of the banking system.</p><p>All leading European central banks are selling off gold reserves, under an agreement that allows them to sell 500 metric tons of gold through Sept. 26, according to bloomberg.com. But the Spanish Central Bank is selling the most. Its official website announced that it reduced its gold holdings to 9.9 million ounces in May, from 10.8 million ounces at the end of April.</p><p>In the last three months the Bank of Spain has been on the scene "hemorrhaging nearly 3 million ounces of their reserves," according to a report by Forex.com.</p><p>If the banking system in Spain is heading for a total meltdown as some economists now believe, they're running out of gold to plug the gap, having disposed of 20% of their reserves in the March-April time frame."</p></div></body>