Central Banks Buying Gold At Record Pace

Gold bar Wikimedia Commons image

Activist Post

One would think the record price for gold would cause some profit taking by large institutions. Indeed, the media is trying to convince people that now is the time for individuals to take their profits on old jewelry and coins. 

However, Bloomberg reported this week that central banks around the world, who were net sellers of gold a decade ago when it was a bargain, are now net buyers of gold, indicating that gold may be poised to reach $2000 an ounce:

In 2010, central banks became net buyers for the first time in two decades, adding 87 metric tons in official-sector purchases by countries including Bolivia, Sri Lanka and Mauritius, according to World Gold Council data. China, with more than $3 trillion in foreign-currency reserves, plans to set up new funds to invest in precious metals, Century Weekly reported this week. Russia purchased 8 tons of gold in the first quarter.