France pulls last gold held in US (mining.com)

Article summary

The Bank of France has repatriated its remaining gold holdings from the US, selling 129 tonnes of gold and buying new gold bars that meet modern international standards to replace them. This move resulted in a capital gain of $15 billion for the bank. The gold is now stored in the Bank of France's vaults in Paris. The overall size of France's gold reserves remains unchanged at approximately 2,437 tonnes.

Main themes

• Gold repatriation
• Central bank reserves
• Gold market
• Financial accounting
• International trade

What commenters say

• The Bank of France's $15 billion gain is due to the realization of capital gains from selling gold at a higher price than it was originally purchased for, rather than any actual increase in the value of the gold itself.
• The bank's decision to sell and then buy back gold at a higher price seems counterintuitive and may have resulted in a loss rather than a gain if the gold price had continued to rise during the transaction period.
• The gain is simply a result of accounting rules, where the bank is required to report realized gains, rather than any actual profit from the transaction.
• The transaction was likely profitable because the bank bought the gold at a low price long ago and sold it at a much higher price, allowing them to realize a significant gain.
• The article's implication that the bank made a profit from the rising gold price is misleading, as the bank would have incurred a loss if they had sold the gold and then bought it back at a higher price.
• The bank's actions may have involved taking exceptional risk, but the gain is simply a result of regular accounting practices for realized gains.