Gold RUSH......CB's buying Gold as fast as they can

[Mega]

http://www.bloomberg.com/apps/news?p...PzwyB9SY&pos=4

Mike

[Starving Steve]

Re: Gold RUSH......CB's buying Gold as fast as they can

In a bearish light, central banks only added 425 metric tonnes to their 30,117 tonne combined-total, so they only added 1.4% to their total. That is pretty pathetic.

And if the central banks go ahead and purchase 200 metric tonnes more this year, that means a combined increase of about two-thirds of one percent of the combined total reserves. Again, pathetic.

But maybe any gold-buying by central banks to-day is interesting. First, the gold-buying is at all-time high prices, and second, gold is out of favour with the Keynsian economists who run the central banks. So, apparently they have their (hidden) doubts about Keynse and his theories, or else they have their doubts about the safety of world currencies.... Why else would they buy gold at all-time high prices?

[gnk]

Re: Gold RUSH......CB's buying Gold as fast as they can

In a bearish light, central banks only added 425 metric tonnes to their 30,117 tonne combined-total, so they only added 1.4% to their total. That is pretty pathetic.

And if the central banks go ahead and purchase 200 metric tonnes more this year, that means a combined increase of about two-thirds of one percent of the combined total reserves. Again, pathetic.

But maybe any gold-buying by central banks to-day is interesting. First, the gold-buying is at all-time high prices, and second, gold is out of favour with the Keynsian economists who run the central banks. So, apparently they have their (hidden) doubts about Keynse and his theories, or else they have their doubts about the safety of world currencies.... Why else would they buy gold at all-time high prices?

You also have to put that in perspective. For about twenty years, the CBs were net sellers.

Remember Gordon Brown selling 1/2 of the UK's gold about ten years ago? Have you looked at the trend of Euro CBs the past ten years? Russia, China, and India combined are trying to accumulate 5,000 tons. They can't do it too fast, because of market reactions.

This is historic for the "barbaric relic."