Central Bank gold buying picks up nicely in June

After May’s big fall in central bank gold buying when China announced no purchases at all and Russia only three tonnes, gold investors should be relieved that these two nations, which are by far the largest central bank buyers of gold, are back on track, with China announcing purchases of 15 tonnes of gold and Russia 18.7 tonnes in June.  these two nations between them have been accounting for perhaps over 70% of last year’s estimated (by Metals Focus) net central bank total of around 566 tonnes – one can’t know for sure as China only started publishing its monthly gold reserve increases from mid-year.  This year to date their combined purchases have fallen off a little, even discounting the May hiatus, while Venezuela has sold  at least 67 tonnes to relieve its foreign debt situation.  we thus believe that total central bank net gold purchases this year may fall to as little as 300-350 tonnes – some 40% or more below last year’s estimated total.

Do check out my articles on seekingalpha.com and sharpspixley.com on the subject which go into more detail.  See:

Central Bank Gold Buying Back On Track on Seeking Alpha

and

Russian central bank gold buying back too on sharpspixley.com

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s