The Spanish economy has greatly benefited from low interest rates and has experienced continued growth, sustained by an increase in consumption and the construction sector. On the other hand, the increase in value of real estate assets has produced a wealth effect on the Spanish population that has stimulated consumption even more.

In just two months, the Central Bank of Spain has sold off 20% of its gold reserves, equivalent to 80 tonnes of pure gold, and worth about 2 billion dollars. Experts close to the Banco de España have characterized these sales as mere “technical adjustments of the reserves” but the fact is that the Spanish gold holdings, which in March of 2004 held eleventh place in the world’s ranking with 523 tonnes, have been reduced to little more than 300 tonnes.

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