Central Banks Stashing Away Gold at Brisk Pace
Thursday, 25 Mar 2010 09:00 AM
Article Font Size
By: Dan Weil
Central banks around the world added 425.4 metric tons of gold to their reserves last year, the biggest increase since 1964, according to the World Gold Council.That represents a 1.4 percent gain to put their holdings at 30,116.9 tons in total. The increase was the first since 1988.Central banks in India, Russia and China were among those boosting their gold reserves last year, as the precious metal jumped 24 percent, hitting a record of $1,226 an ounce in December.Central banks now possess 18 percent of all gold ever mined.“There’s clearly been a renaissance of gold in central bankers’ minds,” Nick Moore, an analyst at Royal Bank of Scotland, told Bloomberg. “It’s not just been central banks taking on gold, but a general shift for physical gold in the investment sector.” Many are now singing gold’s praises, with the precious metal up about 3 percent so far this year.“Gold is quietly, at the edge, becoming the world’s second reservable currency, supplanting the euro and rivaling the dollar,” money manager Dennis Gartman wrote in his Gartman Letter, obtained by Bloomberg.“The trend shall continue months, if not years, into the future.” David Skarica, editor of The Gold Stock Adviser, tells Moneynews.com that central banks will continue to buy gold. “The next lot sold by the IMF (International Monetary Fund) will go to China’s central bank,” he said. “The IMF has a supply overhang.”© Moneynews. All rights reserved.


Treasury Sees Another Weak Auction as Supply Issues Loom
The final of three Treasury auctions this week was another flop, with investors wary of increased supply and government debt staying away from the sale of seven-year notes.


Treasury Will Soon Have to Pay More to Finance Growing Debt
"If you're going to continue to auction off record amounts of debt—you're going to spend, spend, spend—hey, we're going to make you pay for it," one bond trader says.



Why Bond Auction Fizzled: Fears of a 'Fiscal Train Wreck'


Impasse Over Derivatives Slows Senate Banking Bill


U.S. health insurers' Credit Default Swaps widen after reform


Sales of New U.S. Homes Dropped in February to Lowest on Record


Stocks Fall After Agency Cuts Portugal's Debt Rating


New Homes Sales Hit a Low; Durable Goods Orders Up


US Has Lost 2.4 Million Jobs to China


The Tipping Point at Zero


Fed's Exit Strategy Is Fraught With Danger: Monetary Experts


China Central Bank Issues Sovereign Debt Warning- Financial Times


Britons Cling to Services, Despite Debt- NY Times


Soc Sec Running Deficit 6 Yrs before Projections- NY Times


US Treasury Dumps Citi Stake before Double Dip- Reuters


Don't Blame Short-Sellers for Financial Crisis- Bloomberg


Portugal Downgrade Boosts Sovereign Risk- Bloomberg





Amid budget crisis, California makes parole easier - Yahoo! News. Eric commented: "24,000 prisoners released in one year due to budget cuts, not rehabilitation. and this will not affect the public's safety?"


Record numbers now licensed to pack heat; The "right-to-carry" movement has succeeded in boosting the number of licensed concealed-gun carriers to about 6 million. Mike's favorite quote from the article: "Because the gun death rates parallel an overall drop in crime, Hemenway suspects that the decline 'has nothing to do with concealed-carry laws.'" Mike's comment: "Did a PhD actually say that?"