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> But instead of refining and transporting the gold, it opted to sell the bars and purchase new bullion in Europe. […] Due to rising gold prices, the move helped the bank to generate a capital gain of 13 billion euros ($15 billion),
FBRICS
Good for France to relocate gold back to their own territory, but, uh, how can this result in a 15 B gain? "The overall size of France’s gold reserves still remained unchanged at roughly 2,437 tonnes, which are now entirely held at the BdF’s underground vault in La Souterraine." Is this some special form of French accounting, where the gold becomes more valuable when it returns to French soil?
It's gold only if it comes from the Dore région of France. Otherwise it's just sparkling metal.
Earlier quoted context omitted.
> the price of gold continued to rise as they did this This would mean they sold low and bought high, right?
price of gold dropped from $5500 to $4600 in the last few weeks then came back. all is possible
Is anyone here actually reading the article? Yes, they really made a gain of $15B: > But instead of refining and transporting the gold, it opted to sell the bars and purchase new bullion in Europe. […] Due to rising gold prices, the move helped the bank to generate a capital gain of 13 billion euros ($15 billion),
Earlier quoted context omitted.
> BdF Governor Francois Villeroy de Galhau said the decision to keep the new bars in Paris is “not politically motivated,” as the higher-standard gold bars it bought were traded on a European market.
Well they are probably just being diplomatic, there is no point in accidentally triggering the ape.
Still, a win does signal a dumb process behind the trade as the smart move would be to hedge with future options and/or futures.
But then again, maybe they did hedge the trade and it's just not the right time or place to report it.
Is anyone here actually reading the article? Yes, they really made a gain of $15B: > But instead of refining and transporting the gold, it opted to sell the bars and purchase new bullion in Europe. […] Due to rising gold prices, the move helped the bank to generate a capital gain of 13 billion euros ($15 billion),
Earlier quoted context omitted.
> As the price of gold continued to rise as they did this, Seems counterintuitive to me. This would only make gains when they bought the new gold before selling the old, or when there's some arbitrage going on between Gold/USD, Gold/EUR and USD/EUR. If they first sold the old for USD, then bought the new for USD, with a rising gold price, they'd miss the price-gain during the time between the trades, when they held t…
The source is a press conference where they state the total amount and total value of gold stored hasn't changed. In le figaro they report the profit is due to variation in price between the different transactions. Which seems to be a polite way to say they took exceptional risk.
Nah it's just regular realized gain (delta between acquisition price and selling price).
https://www.banque-france.fr/fr/actualites/resultats-2025-de...
(so it's kinda irrelevant, it's just they have to put it in their books)
This is not gain at all. At least in theory: You own some tons of gold at the start of the process, you have the same tons of gold at the end of the process. The only real gain is that you have gold in the US custody and the US can be tempted to just use it without telling you anything. In other words, you had "paper gold" or "virtual gold" that the US can confiscate anytime, for example after invading Greenland, bla…
It's more of a loss for the USA, which IMO is the unwritten point of the article. France upgraded their gold bars to a new standard and as they were doing that, gold has appreciated massively in price, so France has the new shiny easier to trade bars, and the USA has the old harder to trade bars.