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Dutch Central Bank: pension fund must sell gold

Published:

http://www.bloomberg.com/news/2011-02-10/dutch-central-bank-pension-fund-must-sell-gold.html

AMSTERDAM (AP) — A pension fund in the Netherlands says the country's central bank has ordered it to sell its gold holdings because it is overexposed to a fall in the value of the yellow metal.

The Vereenigde Glasfabrieken pension fund said Thursday it wants to keep the gold but a Rotterdam court sided with the bank in a ruling Tuesday. The fund will now sell its gold holdings down from 13 percent of assets to 3 percent at most.

The fund began buying gold in 2008 due to concerns about inflation and the stability of the euro. It argued the investment has performed well since then, rising about 70 percent to around €1,000 per ounce.

The fund had €260 million in assets in December 2008, mostly in Dutch and German government bonds.

Entry #495

Comments

1.
megamanXComment by megamanX - February 12, 2011, 5:38 am
So they want to sell a stable asset like gold for fiat currency that can be printed at will, sounds like a good idea to me. I can't wait to see what the value of the euro will be when the PIIGS (Portugal, Italy, Ireland, Greece and Spain) become insolvent.
2.
time*treatComment by time*treat - February 12, 2011, 7:54 am
The fund didn't want to sell, the central banksters went and got a court to force the sale.

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