Central bank gold buying hits a record in Q2 2012
Back in February we noted that central banks had been on a gold buying binge throughout 2011. Well, the Gold Council’s quarterly gold report was released this week and it shows that central bank appetite for gold hit a record in Q2 2012.
The report shows that central bank buying in Q2 2012 rose to 157.5 tons – a record quarterly amount during this gold bull run and on an annulised basis is some 628 tons. To put that into perspective during last year’s record buying central banks ‘only’ purchased some 458 tons.
Central bank gold purchases on an Q/oQ basis:
Central bank gold purchases on an annulised basis:
So if you were wondering why there appears to be a very solid floor under the gold price now you know – central banks around the world (excluding the Western banks of course) have been sat on the bid in gold quietly accumulating.
Russia for example now has 9% of its foreign reserves in gold and Kazakhstan (who have increased their target purchases in 2012 to 26t from 24.5t) are targeting 15% of their reserves in gold. We guess central banks like a bargain in gold just as much as the next man.
And as we’ve pointed out before, when central banks make the decision to buy gold it isn’t something done lightly and is something that will be executed over years rather than months – the past 3 years of central bank buying confirms this and it looks set to continue and even increase in the coming years if this quarters results are any guide.
The entire report is well worth a read and full of some very interesting facts and figures that any gold enthusiast can sink their teeth into
Link to this article: : http://www.goldmadesimplenews.com/gold/central-bank-gold-buying-hits-a-record-in-q2-2012-7672/