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Central Banks Buy Gold

Written By Luke Burgess

Posted March 11, 2009


The world’s central banks, which have been net sellers of their gold reserves over the past several years, reversed their selling trend and were net buyers of an estimated 1.1 million ounces of gold during January, according to the New York-based CPM Group.

CPM reported stronger gold purchases by the central banks of Ecuador, Venezuela, and Russia. In January, CPM estimated that Ecuador purchased 920,000 ounces of gold, Venezuela bought 240,000 ounces, and Russia purchased 130,000 ounces, after having bought 310,000 oz in December.

The CPM Group also estimated that France was the largest seller of gold in January by 40,000 ounces.

CPM noted, "It seems highly unlikely that such large net purchases of gold by central banks will continue. However, those central banks that have been selling gold for much of the past two decades have sold most of what they wanted to sell. Others are buying small volumes, and considering larger purchases, in the face of the financial crises and currency market volatility they have faced over the past year."

– luke