BERN, Switzerland -- The Swiss National Bank said Thursday it will sell 276 US tons of gold reserves over the next two years.
The sale would fetch about $5.2 billion (€3.9 billion) at current prices.
The proceeds will be used to increase Switzerland's foreign currency reserves, national bank directorate member Thomas Jordan told reporters.
The share of gold in Switzerland's currency reserves has risen to 42 percent from 33 percent since mid-2005 due to the increase in gold prices. Jordan said the sale would return the share of gold in the currency reserves to their previous level.
The sale will occur at regular intervals over period of two years to minimize the impact on the gold market. Once completed, the national bank will hold 1,040 metric tons (1,146 US tons) of gold.
Story Continues Below
Between 2000 and 2005 Switzerland sold 1,300 metric tons (1,433 US tons) of surplus gold reserves. The proceeds — about 21 billion Swiss francs — were distributed between the federal government and the country's 26 cantons (states), who used the money to pay off debts.
© 2007 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.
Editor's note:
Why gold could skyrocket in 2007. Two best ways to cash in.
Double or Triple Your Money With Energy and Precious Metals Stock Options
Big Gains as Stocks Go Up ... Or Down! -- Find Out How
