Gold To Remain Important Asset Of European Central Banks-ECB
EDINBURGH -(Dow Jones)- Gold will remain an important asset for European
central banks as risk diversification becomes a more significant issue, the
European Central Bank said Monday.
Speaking at the London Bullion Market Association conference, Paul Mercier,
deputy director general of market operations at the European Central Bank, said
gold is no longer important from a monetary point, but is important as an asset.
"Gold makes sense as a contributor to risk diversification," Mercier said. "
Even if some central banks continue to sell and there is a new potential seller
with the IMF, I wouldn't conclude that gold holdings in central banks will
decline in the coming years."
He said the Eurosystem holds 10,800 metric tons of gold, roughly one third of
world gold reserves.
-By Devon Maylie, Dow Jones Newswires; +44 (0)20 7842 9483; devon.maylie@
dowjones.com
(END) Dow Jones Newswires
11-02-090537ET
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