The Significance of the Transaction[s]
What is significant about this or these transactions is that gold is being used in international settlements after so many decades of being sidelined in the monetary system!
The transaction itself confirms that gold is being used in this manner, which is a dynamic confirmation of gold’s return to the monetary system. A “Swap” might be the first desperate step in such a transaction with the swapping bank hoping to repay the foreign exchange, but should it fail, the B.I.S . would have to decide either to keep the gold on its books or to sell it. Again, keeping it on its books is part confirmation that gold is active again on the monetary system, a big boost by itself!
….other topics discussed in this article:
Swaps – What are they and who does them?
Why use gold and not currency?
Gold is back and alive in the monetary system!
See Also Peter Grandich’s recommended article Gold and Silver Good and Bad News (There is no bad news, Less than 1% of total global assets in 2009 were in gold-related investments)