by Michael J. Kosares, USAGold.com:
Consider this from a recent World Gold Council (WGC )report:
“Central banks continued to buy gold; net purchases recorded during the [first quarter, 2012] amounted to 80.8 tonnes, accounting for around 7% of global gold demand. Central banks from a diverse group of countries added to the overall holdings of the official sector, with a number of banks making sizable purchases. Diversification requirements and growth in foreign exchange reserves of a number of countries point towards a continuation of this trend.”
In keeping with this analysis, the World Gold Council moved to “incorporate official sector purchases as an element of gold demand” (my emphasis) in its fundamentals table. Previously central banks occupied a slot on the supply side of the ledger. “The net purchasing of gold by the official sector,” says the Council, “is now an established trend, which is likely to remain in place for the forseeable future.”
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