The New Gold Buyers PDF Print E-mail
Written by Kathryn Smith   
Sunday, 02 May 2010 13:30
Many Central Banks have started to buy gold after only last year the Indian Reserves Bank bought 200 tons of yellow metal from the International Monetary Fund.
by KathrynSmith


Many Central Banks have started to buy gold after only last year the Indian Reserves Bank bought 200 tons of yellow metal from the International Monetary Fund.

India's move determined the gold prices to climb up and stay there. India's move triggered a trend among the Central Banks that have begun to buy large amounts of precious metal.Several countries are doing this. Russia, for example, has been investing in the glittering metal for 20 years and so have the Philippines and Venezuela. The important aspect is that they are buying the yellow metal from the local production, using local currency and thus adding to the reserves or selling it on the market. Whatever they do with the gold after purchase the bottom line is that they are investing in their own economy.

This is the first time in two decades that the Central Banks have become the buyers and not the sellers. One of the most important and obvious reasons why the Central Banks have become so interested in purchasing gold is because they were caught off-guard by the worst financial crisis since the great depression. China is the country that has made the most serious buys in the gold sector. The country has raised its reserves to 1.054 tons.

It is more and more clear that gold has become an important asset that we should include in our portfolio. It is good to invest part of our savings in the yellow metal because its prices cannot fluctuate like the prices of the paper currencies.

There are numerous ways in which one can invest in the glittering metal, from gold accounts to shares or even physical gold like coins or bars. Gold is and will be an important part of the economy and now it is rated at high prices so this is the perfect time to invest.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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