* 3.5% of gold value is being retained for 3 weeks nowThe gold mining cooperatives in Davao de Oro had broken their silence over the delay of the release of multi-million pesos retained by Bangko Sentral ng Pilipinas [BSP]representing 3.5 percent of the total value of gold they sold to BSP on a weekly basis.
By rough estimates about ₱42-million is retained for every 200 kilograms of gold the coops deliver to BSP Davao.
An officer of one of the mining coop who begged not to be identified explained that BSP-Davao assays their gold delivery which averages 200 kilograms per week and retains 3.5% of the value which will only be released after the final assay of BSP-Manila. He claimed that previously, it takes only a week for the retained amount to be released. Recently however, the Central Bank has yet to release the amount and withheld this for almost a month. The money, according to the coop officer is essential to the their operations.
Assay is a test done on metals like gold to determine the content and quality. Preliminary assay is done in BSP Davao and the final test in BSP Manila.
The price of gold is now fetching ₱6,000 per gram. A weekly delivery of gold to BSP Davao is 200 klg. on the average or 200,000 grams valued at about ₱1.2-billion. The retained amount by BSP Davao is about ₱42-million for every 200 kilogram that the coop sells to Bangko Sentral.
Despite the delay, the mining coop still delivers and sells to BSP 200 klgs of gold per week, which means that an estimated ₱112-million is still with BSP Davao.
The Philippines has 150 tons of gold reserves after the Bangko Sentral ng Pilipinas sold 25 tons last year. Palace spokeperson Claire Castro had repeatedly denied Malacanang had anything to do with the sale. Presidential sister Sen. Imee Marcos however castigated the economic managers for the sale of the vital reserves of the country but her outburst did not merit any response.
Gold reserves is vital to the economic strength and stability of a country. The United States holds the largest gold reserves in the world estmated at 8,133.46 metric tons.
The stongest economies in the world are the US, China, Germany and Japan. China, despite being the biggest gold producer in the world is on a buying spree for gold and just last week it made a big announcement its reserves have escalated to 2,279.6 metric tonnes.
Germany has the second-biggest gold reserve at 3,351.53 metric tons while Japan has 846 metric tons. However there is no indication that there will be a lull in China’s gold buying binge as it is part of its strategy to ‘diversify holdings and strengthen its economic position in the world’.
BSP Davao started buying gold years back, at market price, from gold miners in Davao de Oro who had resorted to smuggle their gold production in search for a better price. Since then the miners, who had organized themselves into cooperatives, never encountered any problem with BSP Davao except recently. About 5,000 small scale miners are affected by the sluggish action of BSP and talks are abuzz that some of them might again attempt to smuggle gold out of Davao. Gold fetches better prices in Bulacan and China town jewelleries and in HongKong.
