Italy's Gold reserves become the focus of politics – Commerzbank
|Italy is considering declaring its central bank’s 2,452 tons of Gold as the property of the people, a move opposed by the ECB over fears it could threaten bank independence. While the Italian central bank is unlikely to be forced to sell, central banks in Brazil and Poland have shown strong appetite for Gold, with October purchases reaching 53 tons, Commerzbank's commodity analyst Carsten Fritsch notes.
ECB urges Meloni government to rethink proposal
"Italy is apparently considering declaring the Gold reserves held by the central bank to be the property of the people. The ECB has called on Prime Minister Meloni's government to reconsider this proposal. Apparently, there are fears that the central bank could be forced by the government, as the elected representative of the people, to sell Gold."
"This, in turn, could undermine the independence of the central bank, which is guaranteed in the ECB's statutes. The Italian central bank holds 2,452 tons of Gold in its vaults, making it the third-largest Gold reserve holder behind the US Federal Reserve and the Deutsche Bundesbank. It is very unlikely that the Italian central bank will actually be forced by the government to sell Gold."
"If it did, it would have no trouble finding grateful buyers among other central banks. As reported by the World Gold Council, central bank Gold purchases rose to 53 tons in October, reaching their highest monthly level this year. The largest buyers in October were the central banks of Brazil with 16 tons and Poland with 15.6 tons."
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