India, China, Russia and Some EU Central Banks Buying Gold → Washingtons Blog
India, China, Russia and Some EU Central Banks Buying Gold - Washingtons Blog

Tuesday, November 3, 2009

India, China, Russia and Some EU Central Banks Buying Gold

India's central bank is buying 200 metric tons of gold from the IMF, at $1,045 an ounce.

China, Russia and some EU central banks have also expressed interest in buying gold from the IMF or elsewhere.

Therefore, Bloomberg's article of today saying that "Central Banks Will Become Net Buyers of Gold, WGC CEO Says" is not controversial.

Given that the IMF has only authorized the sale of 403.3 metric tons of gold at this time, the IMFs sales won't drive gold prices down. Indeed, the other 203.3 metric tons should go pretty quickly, and there will almost certainly be left over demand from the world's central banks. Remember, China itself previously considered purchasing the entire 403.3 metric tons.

For the big picture on gold, see this.


  1. Gold is the suckers' play now. Think about it. If you were running the show as the head of the world's only superpower, -is not gold where you would lead all your adversaries before you dropped it with a thud to the mat?

    The US fights both side of EVERY fight.

    That has been the nature of the might of every empirial power throughout history.

    Why would anyone think a commodity like gold -which is at historic highs, is a good place to invest?

    There is no shortage of gold. There is a massive shortage of brains though.

  2. If [TPTB] can spike and or crash oil. Then they can spike and or crash gold, or any other commodity. This only tells me that a new basket of currencies is coming to replace the $$$ as the world currency reserve. Gold will NOT be in that basket.

  3. Wow is all I can say. I just checked the price spike in real time with the free widget ExactPrice and seeing that graph sure makes this jump look really kind of neat and exciting. Price is still staying up there after hours.

    I can only imagine how upset China is over this. Though I'm not surprised that India jumped in. They've got such a cultural link to the metal that one kind of expects them to love the golden stuff.


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