Central banks might put half of reserves into gold: WGC

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SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Central banks might put half of reserves into gold: WGC

Wonder what this portends for the gold market? 

LONDON, June 11 (Reuters) - Central banks may be justified in increasing their gold holdings to 40-50 percent of their reserves, a senior executive of the industry-funded World Gold Council said on Thursday.

'Central banks are justified in having high gold weightings. They are justified in having a 40-50 percent weighting in gold,' Marcus Grubb, WGC's managing director of investment, research and marketing told delegates at a conference organised by ETF Securities.

He said the current macroeconomic environment supported gold buying: 'It is not only about the dollar, not only about diversification, but also about future inflation,' he said.

There were signs that a number of Asian central banks were adding to their gold reserves, he added.

(Reporting by Jan Harvey; Editing by Peter Blackburn)

 

Based on today's activities, it might be that someone's trying to make gold/silver cheaper before the central banks start buying!

DrKrbyLuv's picture
DrKrbyLuv
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Joined: Aug 10 2008
Posts: 1995
Re: Central banks might put half of reserves into gold: WGC

Sam,

I just don't get it.  With all this talk about China and Asian central banks buying gold - why isn't the price going up?

One odd thing in the article is that the advice was delivered at a conference organized by ETF Securities.  Does this mean that they are actually recommending "paper gold"?  Unless you are a trader, I don't know why you would buy ETFs when allocated ownership is available.

Is this attempt to push ETFs actually a ploy to reduce the price of gold?  Gold is scarce but ETFs are not which seems to be a market disconnect. 

Larry

SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Re: Central banks might put half of reserves into gold: WGC

Larry,

I don't get it either. Everything seems to be in "disconnect" mode these days. There is so much behind the scenes manipulation that the normal rules don't apply anymore. Sigh...... 

investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Re: Central banks might put half of reserves into gold: WGC

DrkrbyLuv and Sam,

In my previous post on gold 1500. Qoute:

But the fact is that, with the paper gold market, if you look at the short positions that the commercials, that the bullion banks, which are the agents of the U.S. government are running, it's a complete fraud.  unquoute:

I have read there are many dark pools of money and paper money shorting by world banks, hedge funds that manipulate the markets no end. Trillions of cash that can be called up at anytime to move markets one way or another, or in this case the Gold prices.

 I suggest you read this article: Other articles by these guys have more detail in them about just this topic.

http://www.financialsense.com/fsu/editorials/deepcaster/2009/0612.html

One other Consideration is essential when implementing this Strategy.  In “following the liquidity” one must also follow the Overt and Covert Market Interventions by The Fed-led Cartel*.  There is clear and convincing evidence that a Fed-led Cartel* of Central Bankers and allies regularly manipulate the Precious Metals, Equities, and Strategic Commodities and other Markets.

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