Tags: central bank | gold | buy | nation

24/7 Wall St: 7 Central Banks Bought the Most Gold Last Year

By    |   Wednesday, 26 February 2014 07:42 AM

Only seven governments bought most of the central bank gold purchased in 2013, and they probably weren't the nations most investors would imagine, according to data compiled by 24/7 Wall St.

Those seven nations purchased more than 293 tonnes of the total 368.6 tonnes that were sold by all central banks, as measured by the World Gold Council.

Central banks are generally considered the most important buyers of gold because of the scale of their purposes and their use of the precious metal in foreign reserve strategies.

Editor's Note:
Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

China and India were not on the list of top buyers at all, although consumers in those countries tend to be well-known as the heaviest global purchasers of gold at the individual level.

Instead, the top central bank buyers last year included an assortment of countries in political or economic turmoil, or that had prominent emerging market status.

24/7 Wall St said the seven nations that are among the world's largest gold holders and that also added significantly to their central bank holdings in 2013 were:
Russia, Turkey, Venezuela, Philippines, Kazakhstan, South Korea and Indonesia.

Three of those countries, Russia, Kazakhstan and Indonesia, are major producers of gold themselves.

Two others, Turkey and Venezuela, have been immersed in currency crises, so gold purchases there may be viewed as hedging against the effects of a devalued or sinking currency.

Gold futures this week hit their highest close in almost four months as opaque economic data prompted trader interest, according to MarketWatch.

Richard Gotterer, managing director and senior financial advisor at Wescott financial Advisory Group, noted gold has been rising even as equities have gone higher.

"It seems to have decoupled somewhat in the short term," he said. "Gold's rally this year has been built on several fronts, including the oversold bounce, but it picked up more steam from geopolitical fears and currency concerns, not to mention the renewed interest out of China and India for the physical product."

Gold prices have been receiving support from concerns about economic growth in China and international nervousness about the escalating political upheaval in Ukraine, Reuters reported.

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

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Only seven governments bought most of the central bank gold purchased in 2013, and they probably weren't the nations most investors would imagine, according to data compiled by 24/7 Wall St.
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2014-42-26
Wednesday, 26 February 2014 07:42 AM
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