Posted on 05/04/2011 9:49:27 AM PDT by Nachum
Mexico's central bank bought more than 90 tonnes of gold between January and March, according to figures from the International Monetary Fund (IMF).
The World Gold Council has said it expects central banks in emerging markets to be the biggest buyers of gold, with its price near record highs.
Banks are seeking to diversify their reserves out of US dollars.
Mexico now owns 100.15 tonnes of gold, data on the IMF website showed. At the end of January it held 6.84 tonnes.
Mexico's purchase is equivalent to about 3.5% of annual mined output.
The country now owns $4.93bn (£2.98bn) worth of gold, which hit a record price of $1,575.79 an ounce on Monday.
It takes Mexico to 33rd place on the list of the world's top gold holders.
(Excerpt) Read more at bbc.co.uk ...
Central banks are buying up the metal, the dollar is in free fall, Asia is dumping the dollar, we still won’t pump oil, more than half the country is employed by the government, unemployment is still at depression era levels and gold is going to fail?”
Don’t look at facts, background information, or common sense. We’re supposed to be sheeple, step into line and listen to what the talking heads tell us. Silly... Afterall, soon we’ll all be on unemployment and receiving foodstamps, and then with all that spare time on our hands, we can tax the rich!/s
I do believe that it was $250 because at that time nobody wanted any. I remember it well (Dot Cot bubble era, IIRC). However, the game of fiat money is nearly up, and people are starting to get their ducks in a row. Those who don’t want the chip (proverbial or literal), are buying a medium of exchange. So are the power players. Best of luck, to us all!
nice they can afford it..where did they get the money?
where is our gold..have they sold it all.
“Bad money drives out good” is a rule that you should remember. It works like this, two people pay for you for goods, one hands you a gold coin with $20 stamped on it and another hands you a piece of paper with $20 stamped on it. You now have $40 in your pocket and go to purchase $20 worth of goods. You know the inherent value of the coin and the paper $20 so you naturally want to hang on to the coin since it has more inherent value than the paper. So you pay for your purchases with the paper and hoard the gold coins. Everyone else is doing the same thing and pretty soon the gold disappears from the market place because no one wants to spend it.
So long as there is fiat money in the world it will dominate and gold will act as more of a commodity than a currency which means it will go up and go down depending on market forces (fear, greed, supply, demand, etc). Besides, name one country that is on the gold (or silver) standard. There are none. PM’s are a useful way to protect against run away currency inflation but like any commodity it will also at times loose value compared to the currency (as it did after the 1980’s peak). So don’t count the fiat dollar down and out just yet, it may surprise you at how long they can run this game.
“It takes Mexico to 33rd place on the list of the world’s top gold holders.”
Hey! They’re right behind me! LOL! :)
The state in which I currently live just made silver and gold legal tender. In Idaho (different state), you may now pay taxes etc. with silver.
One can buy goods and services here with PM’s. As far as the examples you provided, they are spot on. Silver and gold are only worth (as is anything) what someone else is willing to pay for them. There is nothing in the world that doesn’t fluctuate in price, and largely based upon supply and demand (some things, like paper PM’s aren’t real). The perception of value in the FRN’s are dropping like a rock, no matter who wishes it different. The problem is the American way of life is due for a HUGE correction. I’ve said it, over and over. American’s have lived off of the labor of other countries’ citizens for a long time. We’re paying in debts, and producing little (not nothing as some would say). Peter Schiff just had an excellent blog about the topic.
The fact is when American’s were producing, we sold to the world, because we had what they NEEDED and they had what we WANTED. Now the world is producing it’s own, and We’re going into debt for products while producing virtually nothing. When America loses the inhibitory regulation and Taxation and people can prosper, they will produce. But as for now, we are in a quickening downward spiral. There is nothing to back the FRN, there is no basis for the value laid into it, and eventually, it too, will have no value. My two cents.
I bought a little at $45. Of course, it was proof statehood quarters for a little above scrap, so I’m not too concerned.
Sorry hoss, but that's not the most recent sale of gold by a major central bank.
Mexico bought 93.3 metric tons since January, adding to holdings of about 6.9 tons, according to International Monetary Fund data. Russia increased its reserves by 18.8 tons to 811.1 tons in March and Thailand expanded assets by 9.3 tons to 108.9 tons in the same month, the data show.
Mexico, Russia, Thailand Add $6 Billion of Gold to Reserves, IMF Data Show
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