Against the Trend: Who Is Selling Gold? A Comprehensive Analysis of the Cash-Out Logic in Seven Countries

(1) Against the backdrop of global risk aversion driving up demand for gold, a group of countries are taking the opposite approach, becoming sellers in the gold market. The motivations behind this range from filling fiscal gaps to dealing with geopolitical logistics crises, each differing from the other. (2) Poland has become the most notable seller. According to informed sources, the governor of Poland's central bank has proposed a plan to sell part of its gold reserves (totaling about 550 tons) to raise up to 48 billion zloty (approximately $13 billion), with the funds to be used for defense spending. The plan has received presidential support, while Poland's central bank had previously been the world's largest publicly reported gold buyer. (3) Venezuela's sell-off stems from a shortage of US dollars. Two sources said its state-owned mining company signed an agreement on Monday to sell up to 1,000 kilograms of gold to the US market. It is reported that the US Secretary of the Interior had previously arrived in the country to discuss oil and mineral opportunities, helping to facilitate this contract. In addition, data from the country's central bank shows that nearly 6 tons of gold were sold in the second half of last year. (4) Dubai's discounted sales are a result of a logistics crisis. Ongoing conflict in the Middle East has led to flight suspensions, hindering the export of gold bars from this key trading hub. To avoid unlimited storage and financing costs, traders are selling gold at discounts of up to $30 per ounce below the London benchmark price. (5) Lebanon is considering using its "bottom drawer" assets. The country's central bank holds over 280 tons of gold, second only to Saudi Arabia in the Middle East. According to foreign media reports, bankers and politicians are considering selling or leasing part of the gold reserves to save the economy, but the proposal has sparked strong public opposition. (6) Russia sold 300,000 ounces of gold in January, reducing its reserves to 74.5 million ounces, marking the first decline since October last year. Data from the Russian central bank shows that this move is expected to cash in about $1.4 billion, aimed at covering the budget deficit. (7) Bulgaria's sale is an institutional arrangement. Data from the World Gold Council shows that the country's central bank sold 2 tons of gold in January, as part of transferring gold reserves to the European Central Bank for joining the eurozone. In addition, Kazakhstan and Kyrgyzstan also made small sales of 1 ton of gold each in January.