France’s central bank has sold off the last of the gold it held in the United States Federal Reserve and replaced it with higher quality bars in Paris, taking advantage of rising prices to make nearly…

France’s central bank has sold off the last of the gold it held in the United States Federal Reserve and replaced it with higher quality bars in Paris, taking advantage of rising prices to make nearly €13 billion as it upgrades its holdings.

Archived version: https://archive.is/20260406065208/https://www.rfi.fr/en/france/20260404-french-central-bank-nets-€13bn-from-us-gold-sale-consolidates-reserves-in-paris

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  • UnspecificGravity@piefed.socialEnglish
    52·
    1 month ago

    Because they are selling it at a different price than they bought it for.

    They bought it for X dollars and now sold it for 13 billion dollars more than the price they paid for it.

    Then, in a separate transaction, they bought the same value in gold somewhere else.

    They made money by selling gold they bought awhile ago. Not by buying gold somewhere else.

    • prettybunnys@piefed.socialEnglish
      42·
      1 month ago

      If I have $100 dollars in gold that appreciates in value to $200 in gold I only make $100 if I sell and don’t purchase the same quantity.

      Which they say they did.

      My point is how does this generate revenue, as they may have made money on the initial sale BUT to purchase the same amount would presumably cost the same amount (if not more due to rising prices?)