Tags: gold | central | banks

Who Wants Gold Most? Central Banks

By    |   Thursday, 12 Nov 2009 11:26 AM

Central banks represent a major factor behind gold’s rise to record highs, and they are likely to continue boosting the precious metal.

The central banks will probably end the year as net buyers of gold for the first time in two decades, according to The Wall Street Journal.

Just last month, India bought 200 metric tons of gold from the International Monetary Fund for $6.7 billion, the biggest central bank acquisition in 30 years.

The IMF has another 200 metric tons it wants to unload.

Experts tell The Journal that Asian and Mideast central banks could be the next buyers, including The People’s Bank of China.

Wei Benhua, a former Chinese official, recently told Chinese magazine Caijing that China, Brazil or Russia may snap up IMF gold.

Until recently, central banks represented a negative factor for gold.

Countries such as Switzerland, the U.K. and the Netherlands dumped the precious metal to invest in assets that were rising while gold prices languished.

Over the last 18 years, central banks cut their gold portfolios by 10 percent, according to The Journal.

But now the tide has reversed. This could be a "watershed year," Barclays Capital analyst Suki Cooper wrote in a note to clients.

Many experts have turned extremely bullish on gold amid concern about inflation and dollar weakness.

Investment legend Jim Rogers says gold will probably surpass $2,000 an ounce, and Federated strategist David Tice told Yahoo! it can breach $3,000.

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
StreetTalk
Central banks represent a major factor behind gold’s rise to record highs, and they are likely to continue boosting the precious metal.The central banks will probably end the year as net buyers of gold for the first time in two decades, according to The Wall Street...
gold,central,banks
240
2009-26-12
Thursday, 12 Nov 2009 11:26 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved