Mali frees Resolute executives after $160 million deal, AFP reports
The three executives, including CEO Terry Holohan, were freed from detention on Wednesday.
Central banks bought close to 535 tonnes of gold in 2012, the most since 1964.
Gold purchases by central banks have slowed this year although the institutions remain net buyers of the metal in 2013.
The world’s central banks changed from being net sellers of the metal in 2009 after two decades of decreasing holdings.
Gold movements by central banks are closely watched by the market. None more so than the People’s Bank of China.
China’s gold reserves are officially put at 1,054 tonnes – a number officials haven’t updated since 2009.
Rumours about massive purchases – up to 6,000 tonnes according to some estimates – continue to circulate as the country seeks to diversify its massive foreign exchange reserves which are mostly held in US dollars.
Gold makes up little more than 1% of the country’s $3.6 trillion in reserves compared to more than 70% for the United States which holds 8,166 tonnes of gold in vaults.
Philip Klapwijk of Precious Metals Insights told Businessweek China may have bought 300 tonnes of gold in the first half of this year:
“The probability is that there’s some form of official purchases that have not yet been reflected in the monetary gold reserves,” Klapwijk said, referring to bullion declared to the International Monetary Fund. “Undoubtedly, that’s provided support for prices, which could have been weaker.”
Chinese consumer purchases of gold this year are forecast to jump 29% to reach 1,000 tonnes, overtaking India to become the world’s largest user, according to the World Gold Council.
The spot gold price dipped below the $1,300 an ounce level for the first time in three weeks on Friday, failing as much as $25 an ounce to a session low of $1,281.
The precious metal is down more than 23% in 2013, dropping to a near-three year low of $1,220 at the end of June, and is set break its unbroken 12-year bull run this year.
5 Comments
Anthony Maw
Confucius Say: “The Golden Rule is: He who has the Gold makes the Rules”….
Russ Winter
They have bought a heck of a lot more than 500 tonnes.
China Maneuvers to Take Away US’ Dominant Reserve Currency Status:
http://winteractionables.com/?p=4676
Burticus
Most likely, the United State_/(not really) Federal (with no) Reserve has 8,166 tons of gold plated tungsten in its vaults, while China, after importing over 1,000 tons a year from (GLD/LBMA vis Switzerland) via Hong Kong and exporting none of its domestic gold production likely has at least 4-5,000 tons of gold in its vaults,.
Mike Failla
The gold left fort knox a long time ago. Anthony is correct. This should be obvious to all that there is no gold in fort knox. The govt has been looting it for years and printing paper. Paper has to be backed with gold and we haven’t been backed by gold for a long time. Remember Nixon took us off the gold standard. It was a mistake and that is just the inevitable happening. The british pound used to be the world standards at one time. Look what happened to it. Just my 2 cents.
eric
1274 now down down. no value this kind of articles. Silver 2.1%