Robert Lambourne: Use of gold derivatives by BIS declines by 55 tonnes in February

The Bank for International Settlements reduced its use of gold swaps and other gold-related derivatives during February, according to the bank's statement of account for the month:

https://www.bis.org/banking/balsheet/statofacc280218.pdf

This decrease follows a large increase in the bank's gold swaps in January.

In recent months the BIS has been actively trading gold derivatives and the amounts disclosed each month have been variable.

The information provided in the BIS monthly statement of account is not sufficient to calculate a precise amount of gold-related derivatives, including swaps, but it appears that the bank's total exposure as of February 28, 2018, was 525 tonnes of gold.

This compares to estimates of 580 tonnes, 450 tonnes, 600 tonnes, and 570 tonnes, respectively, at the January, December, November, and October month-ends and an audited swaps figure of 438 tonnes as of March 31, 2017.

The BIS is an association of central banks and provides little information about what it is doing in the gold market and for whom. This lack of transparency fuels suspicion that the bank's activity is related to official efforts to suppress the gold price.

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Robert Lambourne is a retired business executive in the United Kingdom who consults with GATA about the involvement of the Bank for International Settlements in the gold market.

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