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Business News Thu, 25 Sep 2008

Who sold off Ghana's entire official gold reserves?

... 1st time in 50 years
Gold has since the very beginning of time been accumulated by all countries and their central banks as the ultimate source of the strength of their national paper currencies and the ultimate wealth of their peoples. Gold, unlike paper currency does not lose real value despite time. For the entire 10,000 years of human history every nation – from Persia, to old Ghana to Britain and China have sought to back-up some or all of their currency in gold. Even today despite modern technology, computers and all kinds of crazy economic theories – almost all countries still maintain some proportion of their foreign exchange reserves in gold.

Ghana Gold reserves, tonnes, 1948-2007, major official gold holders


Source: World Gold Council/IMF data and Bank of Ghana

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969
5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979
5.0 5.0 5.0 5.0 5.0 5.0 5.0 6.2 6.8 6.8

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
7.9 9.6 11.9 11.9 13.7 7.0 8.8 8.8 6.7 6.9

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
7.3 8.3 8.6 8.5 8.6 8.6 8.6 8.6 8.6 8.7

2000 2001 2002 2003 2004 2005 2006 2007 2008
8.7 8.7 8.7 8.7 8.7 8.7 8.7 0.0 0.0

  • What is so amazing about this data is that despite the many political upheavals in Ghana’s history from 1960 – Ghana maintained official gold reserves of 5 tonnes for almost three decades (1960-1977), even after Nkrumah’s overthrow. In 1978 and 1979 despite the revolution and political upheavals, the country’s most secure savings – its official gold reserves actually increased – from 6.2 tonnes to 7.9 tonnes. Amazingly, even after the political upheaval of the December 31 revolution, Ghana’s gold reserves increased again to 9.6 tonnes and then to over 10 tonnes.

  • When the NPP took power in the historic 2000 elections Ghana’s official gold reserves were 8.7 tonnes. However in 2007 despite subscribing Ghana to an 850 million dollar bond which will actually cost over 1 billion to pay back – it now seems that the government also for the first time in the 50 year history of Ghana COMPLETELY and quietly sold off ALL of Ghana’s gold reserves!!

  • Since the Deputy Central Bank Governor the learned Dr Mahammadu Bawumiah has been chosen to become our potential Vice President, he, Dr Acquah and the minister of Finance should provide some quick and clear answers about what happened to our gold reserves.

  • Happily this is not a partisan issue. Whether you support the NDC or the NPP, or the CPP, these gold reserves are the inheritance of all our children and who sold them and why they sold them should be known to all of us.

  • ALL PATRIOTIC GHANAIANS – REGARDLESS of PARTY SHOULD DEMAND an ANSWER. If we don’t we have ourselves to blame.
    See official attachments (Source: World Gold Council/IMF)
    World Official Gold Holdings Sept 2008

    Quarterly Gold and FX Reserves June 2008

    ... 1st time in 50 years
    Gold has since the very beginning of time been accumulated by all countries and their central banks as the ultimate source of the strength of their national paper currencies and the ultimate wealth of their peoples. Gold, unlike paper currency does not lose real value despite time. For the entire 10,000 years of human history every nation – from Persia, to old Ghana to Britain and China have sought to back-up some or all of their currency in gold. Even today despite modern technology, computers and all kinds of crazy economic theories – almost all countries still maintain some proportion of their foreign exchange reserves in gold.

    • However despite this clear and convincing evidence of the conduct of almost all nations – according to reports released today by the World Gold Council after gathering all the facts from the IMF and the governments of the world, (http://www.gold.org), the evidence shows that - The Government of Ghana quietly in 2007 SOLD OFF the entire official gold reserves of the country. How can this be? And which Act of Parliament authorized this sale? And who was it sold to? And why was it sold? And into what depreciating foreign currencies has the government now liquidated our national gold reserves into? This is no small matter. Since independence in 1957 – NO Government of Ghana – civilian democratic or even military has done such a thing – kindly see below.

    • To give some perspective, Ghana has maintained its official reserves through thick and thin for over 50 years. According to the international World Gold Council/ IMF Ghana has since becoming a republic in 1960 maintained official gold reserves – see below
    Ghana Gold reserves, tonnes, 1948-2007, major official gold holders


    Source: World Gold Council/IMF data and Bank of Ghana

    1960 1961 1962 1963 1964 1965 1966 1967 1968 1969
    5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0

    1970 1971 1972 1973 1974 1975 1976 1977 1978 1979
    5.0 5.0 5.0 5.0 5.0 5.0 5.0 6.2 6.8 6.8

    1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
    7.9 9.6 11.9 11.9 13.7 7.0 8.8 8.8 6.7 6.9

    1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
    7.3 8.3 8.6 8.5 8.6 8.6 8.6 8.6 8.6 8.7

    2000 2001 2002 2003 2004 2005 2006 2007 2008
    8.7 8.7 8.7 8.7 8.7 8.7 8.7 0.0 0.0

  • What is so amazing about this data is that despite the many political upheavals in Ghana’s history from 1960 – Ghana maintained official gold reserves of 5 tonnes for almost three decades (1960-1977), even after Nkrumah’s overthrow. In 1978 and 1979 despite the revolution and political upheavals, the country’s most secure savings – its official gold reserves actually increased – from 6.2 tonnes to 7.9 tonnes. Amazingly, even after the political upheaval of the December 31 revolution, Ghana’s gold reserves increased again to 9.6 tonnes and then to over 10 tonnes.

  • When the NPP took power in the historic 2000 elections Ghana’s official gold reserves were 8.7 tonnes. However in 2007 despite subscribing Ghana to an 850 million dollar bond which will actually cost over 1 billion to pay back – it now seems that the government also for the first time in the 50 year history of Ghana COMPLETELY and quietly sold off ALL of Ghana’s gold reserves!!

  • Since the Deputy Central Bank Governor the learned Dr Mahammadu Bawumiah has been chosen to become our potential Vice President, he, Dr Acquah and the minister of Finance should provide some quick and clear answers about what happened to our gold reserves.

  • Happily this is not a partisan issue. Whether you support the NDC or the NPP, or the CPP, these gold reserves are the inheritance of all our children and who sold them and why they sold them should be known to all of us.

  • ALL PATRIOTIC GHANAIANS – REGARDLESS of PARTY SHOULD DEMAND an ANSWER. If we don’t we have ourselves to blame.
    See official attachments (Source: World Gold Council/IMF)
    World Official Gold Holdings Sept 2008

    Quarterly Gold and FX Reserves June 2008

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    Source: K.S Garbrah
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