Central Banks are Acquiring Gold, Dumping US Dollars

There is evidence that central banks in several regions of the World are building up their gold reserves.

US dollar holdings and US dollar denominated debt instruments are in effect being traded in for gold.

This is quite the opposite of what happened throughout the 1990s, when central banks routinely dumped large amounts of gold, contributing to a depressed gold price.

Today, those same banks are acquiring gold, except this time the central banks of Russia, China and the Persian Gulf region are major players in the market as well, which adds even more to the demand.

http://mudatengah.blogspot.com/2011/01/central-banks-are-acquiring-gold.html

 

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