Central Banks And Gold In 2011, Record Buying

Posted: December 26, 2011 in Current Events, Financial Survival, Gold, Precious Metals, World Events

There is no doubt we are witnessing a battle between inflationary and deflationary pressures.  We are also still in the middle of an ongoing currency war, which Jim Rickards explains so well in his recent book Currency Wars, which you can find here.  In the middle of this war the media continues to hammer gold and silver, constantly telling the public gold is a bubble. 

If you look behind the scenes central banks do not believe gold is a bubble, as they continue to buy around the world.  According to the International Monetary Fund, the Turkish central bank increased its gold reserves to 5.758 million ounces in November, from 4.429 million ounces the month prior.

You can find additional articles showing 2011 was a big year for central banks accumulating gold, in fact the biggest in 40 yearshere, here  The reality is central banks are value buyers and simply would not aggressively buy gold if we were in bubble.  When the currency war is over there will be one man standing and that will be gold.

  1. I also don’t think the sell point will be that important. Unlike most bubbles, when the printing presses have fallen silent and a new currency has some credibility, I expect a rounded top in gold. It won’t just crash like it does with most asset bubbles because it is not just an asset, it is also money and we will be on some sort of a gold standard. Also, it won’t crash because the central banks are not going to dump, and people will be afraid another round of inflation will occur so they will hold onto physical. The air will go out of the bag slowly.

  2. […] $1.5 quadrillion denominated in dollars? Are people around the world still buying physical?  Are Central Banks buying or selling? You can go on and on but I think you get the […]

  3. Just about all of what you state happens to be supprisingly accurate and it makes me wonder why I hadn’t looked at this in this light previously. This article really did turn the light on for me as far as this particular subject matter goes. But at this time there is actually just one position I am not too comfy with and whilst I attempt to reconcile that with the main idea of the position, allow me see just what all the rest of the readers have to point out.Nicely done.

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  8. The majority of the people of the world believe that oil prices such as gold prices are not likely to fall.

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