The central bank of Mexico bought nearly 100 tons of gold in February and March, reports FT.
The purchase is one of the largest by a central bank in recent history. The gold is worth $4.6 billion at current prices and is equivalent to about 3.5 per cent of annual mined output, according to FT.
The central bank has not been publicly announced the move, but has reported it both on its own balance sheet, posted online, and to the International Monetary Fund’s statistics on international reserves.
Bottom line: Central bankers from around the world are showing no respect for the dollar.
China announced in 2009 that it had bought 454 tons of gold over the previous six years; India bought 200 tons of gold directly from the International Monetary Fund in October 2009; and Russia has bought approximately 400 tons on the open market over the past five years.
So is this where Ben Stein chimes in again with:
ReplyDelete"I just don't see why it is considered so valuable. It earns no interest. It's just a passive, inert metal. It's like an obsession, it's like a mania, to have it. And I don't see what the value is."
Er... what he meant to say is sell your's so I can buy it.
It would appear that central banks and countries around the world think good ol' Ben is as clueless as the rest of us... But, gotta tow that party line!
If you have US dollars, you should be buying as mich gold and silver as you can afford, because that dollar is going to be as good as worthless within a few years, if not sooner.
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