Blanchard and Co. applauds new gold standard

Blanchard and Co. applauded the International Monetary Fund today for adopting a "landmark" accounting change to the way Central Banks account for its gold loans, giving this sector of the commodities market more transparency than ever.

"This is a huge step forward for the precious metals

market and a major victory for the gold market investor," said Blanchard Chairman and CEO Donald Doyle Jr. "Not since the Washington Agreement on gold in 1999 and the legalization of gold ownership for Chinese citizens in 2004 has there been such an important event in the advancement of the gold market."

Blanchard and Co. has long claimed IMF accounting guidelines allow Central Banks and bullion banks to inaccurately account for gold loans. The new accounting change means Central Banks will no longer include the amount of gold they have loaned and sold into the market as part of their reserve total assets, Doyle said.

"Transparency has always been a central issue in the gold market for investors and analysts alike but this decision by the IMF will greatly redress that issue as these accounting changes are implemented," Doyle said. "It also only adds more credence to our analysis that the precious metals markets are now poised to make long-term, steady price growth."

Blanchard "Gold Market Lending" paper at blanchardgold.com/beru was written by Neal Ryan, Blanchard director of economic research. It analyzes how Central Bank transactions could affect the gold market if loan information was made in an accurate and timely fashion.

"This is a wonderful development for the gold market because of the additional transparency that is created by the changes in IMF accounting regulations," Ryan said. "This is an issue that changes the entire landscape of the gold market for the betterment of all participants involved, because there is now data available that had never previously been published. A transparent market is a healthy market, and the gold market just got a lot healthier."

Blanchard and Company, Inc. is a retailer of American rare coins and precious metals, serving more than 350,000 people with consultation and assistance in the acquisition of American numismatic rarities and gold, silver and platinum bullion.