Analysis: If Cyprus can sell gold to help bailout, why not others? | Reuters

Analysis: If Cyprus can sell gold to help bailout, why not others?
| Reuters

Heavily indebted euro zone nations such as Italy and Portugal could come under pressure to put their bullion reserves to work as a result of plans for Cyprus to sell gold to meet its financing needs.
A European Commission assessment of what Cyprus needs to do as part of its European Union/International Monetary Fund bailout showed Cyprus is expected to sell in excess gold reserves to raise around 400 million euros ($523 million).
Other struggling euro area countries may be pushed to take note. Between them, for example, Portugal, Ireland, Italy,Greece and Spain, hold more than 3,230 metric tons (3561 tons) of gold between them, worth nearly 125 billion euros at today's prices.
The lion's share of that - 2,451.8 metric tons - belongs to Italy. But Portugal and Spain also hold hundreds of metric tons and gold is currently trading around $1,558.95 per ounce in spot terms, or 1,189 euros.
The metal makes up more than 90 percent of Portugal's foreign exchange holdings, and 72.2 percent of Italy's. India, by contrast, holds less than 10 percent of its reserves in gold.