Got this off of MSN
[quote
Central banks purchased 118 tonnes in net gold in the second quarter of 2014, representing a 28 percent year-over-year increase, according to The World Gold Council.
In May 2014, the European Central Bank and other European central banks signed the fourth Central Bank Gold Agreement (CBGA). The agreement says the central banks "currently do not have plans to sell significant amounts of gold," and that it will last for five years starting in the end of September 2014.
Country-wise, Russia saw a major increase in official reserves since February 2014, moving its place up two spots in the ranking.
Global official gold holdings totaled 31,812 tonnes as of August 2014, according to the latest report from the World Gold Council.
][/quote]
Why do central banks purchase Gold?
Moderator: Global Moderator
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Libertarian666
- Executive Member
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Re: Why do central banks purchase Gold?
Because they know better than to trust other central banks. 
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mortalpawn
- Full Member
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Re: Why do central banks purchase Gold?
So they can manipulate the price of gold of course!
Just kidding...sort of...
Just kidding...sort of...
Re: Why do central banks purchase Gold?
Central banks hold gold because they don't believe that their paper currencies will hold up over the long term. The really remarkable thing is that other countries - most notably Germany - have stored at least some of their gold in the US.
Re: Why do central banks purchase Gold?
Based on how fast they've been able to repatriate it, I think it might be more appropriate to say Germany has thought they stored some of their gold in the US. See (e.g.) http://www.maxkeiser.com/2014/06/german ... continues/barrett wrote: Central banks hold gold because they don't believe that their paper currencies will hold up over the long term. The really remarkable thing is that other countries - most notably Germany - have stored at least some of their gold in the US.
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Libertarian666
- Executive Member
- Posts: 5994
- Joined: Wed Dec 31, 1969 6:00 pm
Re: Why do central banks purchase Gold?
Yes, exactly.rickb wrote:Based on how fast they've been able to repatriate it, I think it might be more appropriate to say Germany has thought they stored some of their gold in the US. See (e.g.) http://www.maxkeiser.com/2014/06/german ... continues/barrett wrote: Central banks hold gold because they don't believe that their paper currencies will hold up over the long term. The really remarkable thing is that other countries - most notably Germany - have stored at least some of their gold in the US.