Gold loses its shine as banks sell, costs fall

AUSTRALIA - A third of the gold ever mined, or 30,000 tonnes, is stored in central banks around the world. The banks want to lower their reserves in favour of higher yielding investments such as bonds and currency.

The gold market is struggling to absorb news that Bundesbank plans to sell some of its 3,500 tonnes of gold reserves. It will do so in keeping with a deal between 15 European banks not to sell over 400 tonnes per year before 2004. AME Mineral Research indicates that the cost of prod