Central Banks Leading New Gold Rush

Forbes ^ | September 10, 2010 | Robert Lenzner

[Christian_Capitalist]

StreetTalk With Bob Lenzner
Central Banks Leading New Gold Rush
Robert Lenzner, 09.10.10, 08:00 PM EDT
Russia, India, Saudi Arabia and the Philippines follow Soros and Paulson into the metal.

No wonder gold rose to $1,260 an ounce this week before easing. One by one, central banks are amassing major gold positions, proof positive that they want to participate in the world's most glamorous asset class. Think central banks taking investment advice from global hedge funds.

This is probably a unique order in the investment jungle. The major seller, the International Monetary Fund, does not look too sharp. It sold 541,700 ounces of the shiny metal in July alone according to Uncommon Wisdom, an investment service I've been monitoring.

So far in 2010 Russia has increased its gold holdings by 2.8 million ounces, $3.6 billion at current prices. Total holdings by the Putin government total almost $30 billion. Saudi Arabia and the Philippines have disclosed new gold buying in 2010, plus India, Sri Lanka and Mauritius bought gold in 2009.

The World Gold Council seems sure the People's Bank of China also is a major accumulator of gold....

[Christian_Capitalist]

Of course China is starting to accumulate a large gold position. I don't think that you need well-placed anonymous sources in Hong Kong to guess that.

[Christian_Capitalist]

Goldbug ping list material?

[JRandomFreeper]

Does Russia still have that mountain full of slightly radioactive silver? I still have one 3-ruble silver piece that I don't handle because it makes a Geiger counter tick a little faster than background.

/johnny

[Christian_Capitalist]

Now that I don’t know! I never heard that story.

[Zakeet]

The Wee Wee has had wonderful effect on the sale of guns, ammo and precious metals

[Moonman62]

So far in 2010 Russia has increased its gold holdings by 2.8 million ounces, $3.6 billion at current prices. Total holdings by the Putin government total almost $30 billion.

Yawn. Not much compared to just about anything associated with a national government. And other than the above sentence the article is lacking in real numbers.

And if governments were buying stocks and driving up prices like this article claims is being done for gold there would be all sorts of screeching about it.

[True Grit]

I would like to know the real story regarding Fort Knox. Efforts to audit the place have for years been blocked as have those regarding the federal reserve.

[Beagle8U]

How will you protect your investments? THIS big a$$ hunk of shiny metal is how! The price will continue to rise ( until demoncraps are out of office)...

[jiggyboy]

Goldbug ping

Related thread (already pinged) on Bangladesh being one of the countries buying gold from the IMF here http://www.freerepublic.com/focus/f-news/2587144/posts

And I do believe we have seen right here, on this very thread, the birth of the silver equivalent of the gold-plated tungsten disinformation campaign.

Mail me to get on or off the Free Republic Goldbug Ping List.

[Christian_Capitalist]

True, that.

[Oatka]

The price will continue to rise ( until demoncraps are out of office)...

Then it will take a tumble as people foolishly believe the newly-elected Pubbies can reverse this decline.

[bert]

It was near empty or in danger of being empty when Nixon quit buying for $35/oz

[True Grit]

Ron Paul thinks it’s empty but his efforts to audit will be blocked as were those to audit the federal reserve.