Socio-Economics History Blog

Socio-Economics History Blog

Central Bank Gold Buying Soars To Near A 50-Year High!

by mosesman
Remember the Golden Rule: He who has the gold makes the rules! Got physical gold yet?
Remember the Golden Rule: He who has the gold makes the rules! Got physical gold yet?
  • For a global economic, financial and currency reset to be successful, you need to deal with the problem of overwhelming debt. How do you resolve the debt problem in countries around the world, ranging from 100% – 500% of GDP (public debt) in the industrialized world?
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  • The simple answer is GOLD. Gold is the perfect debt extinguisher. If a government owes US$100B in public debt and has US$10B in physical gold at current price (US$1200/oz), a simple revaluation of gold price by 10X (ie. to US$12,000/oz) will make the country totally solvent! Ie. their physical gold holding will be worth US$100B overnight.
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  • Central banks around the world are buying physical gold in anticipation of this global reset which is coming soon! It is not a question of whether but when.
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  • Central Bank Gold Buying Soars To Near A 50-Year High!
    by Vronsky, http://www.gold-eagle.com/  
    During 2014 country Central Banks bought 477 tonnes…close to a 50-year high…and that’s equivalent enough to buy 75 Boeing Dreamliners planes. This is at once astounding as well as revealing vis-à-vis a slowly dropping gold price since late 2011.   
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    Russia was by far the largest buyer. Its purchases made up a staggering 36% of total Central Bank buying. In total, Central Banks bought 477 tonnes of the precious metal last year of which 173 tonnes flowed into Russia, according to a report from the World Gold Council.
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    Emerging market Central Banks in general have also had a strong appetite for gold in recent years. “They don’t have the legacy of the gold standard, so they are looking to add to their gold reserves,” explained World Gold Council’s Bhatia. “Big buyers over the last decade? China has added, India, Thailand, Mexico, Kazakhstan,” he said.
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    Looking ahead what can we expect to see from Central Banks in terms of gold purchases? Most likely more of the same. “We expect Central Banks to be consistent buyers of gold. We are looking at steady as she goes. We expect Russia to continue to buy gold — and we don’t expect major sales from anyone,” concluded CPM Group’s Christian.  (Source: KitcoNews)
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    read more!

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