EconomicPolicyJournal.com

Wednesday, May 4, 2011

REPORT: Central Bank of Mexico Has Bought Tons of Gold

The central bank of Mexico bought nearly 100 tons of gold in February and March, reportsFT.

The purchase is one of the largest by a central bank in recent history. The gold is worth $4.6 billion at current prices and is equivalent to about 3.5 per cent of annual mined output, according to FT.

The central bank has not been publicly announced the move, but has reported it both on its own balance sheet, posted online, and to the International Monetary Fund’s statistics on international reserves.
Bottom line: Central bankers from around the world are showing no respect for the dollar.

China announced in 2009 that it had bought 454 tons of gold over the previous six years; India bought 200 tons of gold directly from the International Monetary Fund in October 2009; and Russia has bought approximately 400 tons on the open market over the past five years.