RUSSIA, KOREA AND CENTRAL BANKS ACCUMULATE GOLD ON DIP BELOW $1,600/OZ
MARCH 7, 2013
Central banks are among the shrewd investors who buy gold bullion on dips. When gold was weak during May to July of 2012, central banks actively bought nearly 71 tonnes.
Russia and Kazakhstan’s bought 12.2 and 1.5 tonnes in January, but until the IMF reports official activity, may help the very poor sentiment towards gold today. Central banks utilize gold bullion to diversify their holdings and limit their foreign exchange exposure.
It was reported that South Korea bought 20 tonnes of gold last month rumoured to be below the $1,600/oz mark. This is the first purchase this year for South Korea, after they purchased 30 tonnes in 2012. Previously they purchased in July 2012 at the same price levels.