Blanchard Lauds IMF Central Bank Gold Lending Accounting Change as Industry Landmark

Precious Metals Economic Research Entity Has Championed This Issue as Key

to Adding Even More Transparency, Price Growth to Gold Market

    NEW ORLEANS, Jan. 22 /PRNewswire/ -- After months of inquiries and a
 hotly debated, in-depth position paper by its economic research unit,
 Blanchard and Company has learned that the International Monetary Fund has
 adopted a landmark accounting change to the way Central Banks account for
 their gold loans, giving this sector of the commodities market more
 transparency than it has ever had, the precious metals market leader
 announced today.
     "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 W. 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 Company has long stated that the IMF's accounting
 guidelines have allowed Central Banks and bullion banks to inaccurately
 account for their gold loans, and the newly adopted accounting change means
 that 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."
     On December 14, 2006, Blanchard published "Gold Market Lending" on its
 website at http://www.blanchardgold.com/beru , and the industry buzzed for
 days. The paper, written by Blanchard's Director of Economic Research, Neal
 Ryan, provides exhaustive research analysis of how Central Bank
 transactions could affect the gold market if loan information was made in
 an accurate and timely fashion. While some misconstrued the information as
 research on market manipulation, the paper is instead specific to one issue
 -- IMF gold accounting procedures for Central Banks as being the most
 important component of gold market transparency.
     "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."
     Ryan says it will take the IMF some time to institute the new
 accounting procedures, but the outlook for the gold market is a rosy one
 moving forward.
     Blanchard and Company, Inc. is the largest and most respected retailer
 of American rare coins and precious metals in the United States, serving
 more than 350,000 people with expert consultation and assistance in the
 acquisition of American numismatic rarities and gold, silver and platinum
 bullion. The Blanchard Economic Research Unit is a key source of precious
 metals market analysis and continues to be an important resource for
 financial and consumer media throughout the United States. Blanchard and
 its predecessor companies have called the New Orleans area home for more
 than 30 years. For more information about the company, visit
 http://www.BlanchardGold.com or call the company toll free at
 1-800-880-4653.
 Available Topic Expert(s): For information on the listed expert(s), click
 appropriate link.
 Donald Doyle
 http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=57205
 Neal Ryan
 http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=57206
 
 

SOURCE Blanchard and Company, Inc.