European central banks value gold as an `anchor’

The Swiss National Bank does not plan to sell any gold, said Jean Zwahlen, member of its governing board, recently. He was speaking to members of the World Gold Council at a dinner in Montreux, Switzerland.

“The composition of our foreign reserves already reflects the 50-50 European balance, and 40% gold coverage of notes is anchored in legislation,” he explained. “Any move to change it would have to be widely discussed first, and I doubt that it could secure a majority.”

Zwahlen noted that the Belgian Central Bank’s recent gold sale was prompted by its large gold holdings and shortage of foreign exchange. “Now, with about 50% gold holdings, its total reserves are more in line with the mainstream of European central banks,” he said. “Among the anchors at our disposal, I personally think that gold still has a role to play.”

The World Gold Council, based in Geneva, is an international non-profit association of mining companies from 15 countries.