Gold-Bullion.org
Gold Spot Price $1219.9 0.00    Silver Spot Price $14.39 +0.12    Platinum Spot Price $843.00 +3.00    Call Our Gold Bullion Hotline at 800-300-0715 For Live Quotes On Gold Coins And Bars - Always Free, Insured Delivery.
main image
Brazil Boosts Gold Reserves to 11-Year High

November 21, 2012 - Brazil has raised its gold reserves for a second month during October, brining reserves to the highest level in more than 11 years as central banks around the world, including Kazakhstan and Russia, are boosting holdings by more than 40 metric tons.

Brazil’s holdings expanded 17.2 tons last month to 52.5 tons, the highest levels since January 2001 according to data from the International Monetary Fund. Brazil’s 1.7 ton purchase in September was the first since December 2008. Meanwhile, central bank holdings around the world continue to increase with Russia adding 0.4 tons and Turkey gaining 17.5 tons. Germany, which is the second-largest holder after the U.S., cut its gold holdings by 4.2 tons, the first reduction in Germany’s gold reserves since June.

Gold is headed for its 12th straight annual gain and central banks are expanding reserves. Data compiled by Bloomberg also shows investors hold a record amount in bullion-backed exchange-traded products. Nations bought 373.9 tons of gold in the first nine months of the year and full-year additions will probably be between 450 and 500 tons, according to the London-based World Gold Council.

Edel Tully, an analyst at UBS AG in London, write this is a chunky purchase by a central bank and the gold market will likely sit up and pay attention.

The gold market continued to fluctuate on news in early trading on Wednesday. The lenders to Greece failed to reach an agreement for emergency funds, which hurt the euro and strengthened the dollar, harming the price of gold. Instability in the Middle East coupled with concerns over the continuing U.S. fiscal crisis, however, bolstered the gold market.

The spot price of gold slipped 0.1 percent to $1,725.78 per troy ounce, though U.S. gold for December delivery gained 0.15 percent to $1,726.10 per troy ounce. Silver contracts for December delivery traded up $0.09 to $33.02 per troy ounce.

The majority of central banks around the world turned net-buyers of gold in 2009. Since that time, the gold market has been making a lot of headway and demand from central banks if oft cited as an underlying fundamental. In the third quarter of 2011, central banks bought gold at 40-year highs, indicated we have reached historic proportions commensurate with the U.S. leaving the gold standard in 1971.

Daily Updates Archive

Jonathan Monroe

Senior Staff Writer - Gold-Bullion.org

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine

Call Our Bullion Specialists Free Info On Gold Bars Gold Bullion IRA Gold Bullion Depositories
RSS Big Icon