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Monday, July 12, 2010

Markets spooked by secret gold swap

Secret gold swap has spooked the market

It takes a lot to spook the solid old gold market. But when it emerged last week that one or more banks had lent 380 tonnes of gold to the Bank of International Settlements in return for foreign currencies, there was widespread surprise and confusion

By Garry White and Rowena Mason
Published: 6:10PM BST 11 Jul 2010

Secret gold swap has spooked the market

Secret gold swap has spooked the market Photo: EDDIE MULHOLLAND

The news that a mystery bank has just pawned the family jewels gave traders a jolt – nervous about the sudden transfer of almost 20pc of the world's annual gold production and the possibility of a sell-off.

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