India, China, Russia and Some EU Central Banks Buying Gold

India’s central bank is buying 200 metric tons of gold from the IMF, at $1,045 an ounce.

China, Russia and some EU central banks have also expressed interest in buying gold from the IMF or elsewhere.

Therefore, Bloomberg’s article of today saying that “Central Banks Will Become Net Buyers of Gold, WGC CEO Says” is not controversial.

Given that the IMF has only authorized the sale of 403.3 metric tons of gold at this time, the IMFs sales won’t drive gold prices down. Indeed, the other 203.3 metric tons should go pretty quickly, and there will almost certainly be left over demand from the world’s central banks. Remember, China itself previously considered purchasing the entire 403.3 metric tons.

For the big picture on gold, see this.

This entry was posted in General. Bookmark the permalink.