South Korea bought 16 tons or 466,656 troy ounces of gold in July. The central banks know the jig is up and they keep accumulating gold by the ton.
Source: http://www.reuters.com/article/2012/08/ ... JD20120802
Central banks are doing their best to accumulate as much gold bullion as possible from 2007 - right after the financial crisis struck. Big gold buyers are: 1)China 2)Russia 3)Thailand 4)South Korea. Notice how most of these gold-buying countries are in the East. There is a massive wealth transfer taking place right before our eyes from the West to East.
Central Banks Still Significant Buyers On Gold Dip
Central banks internationally continue to diversify their foreign exchange reserves into gold bullion due to concerns about fiat currencies – including the dollar and especially the euro.
IMF data shows that central banks were again net buyers in April with Turkey and Philippines being the largest buyers of gold.
The Philippines increased their gold holdings significantly by 32.13 tonnes to 194.241 tonnes in March – a 17% increase in their gold reserves in the month.
It was the single largest addition Philippines has made since September 2008. They have been pretty consistent buyers of gold over the last few years, but the 17% increase in April was another big rise.
Turkey expanded its gold reserves by 29.7 metric tons in April. Turkey’s bullion reserves climbed to 239.3 tons last month meaning that Turkey increased their gold reserves by 14% in April.
The central bank on March 27 doubled the share of lira reserves banks can hold in gold to 20%, saying it would provide 6.1 billion liras ($3.3 billion) of extra liquidity.
Mexico increased gold holdings by 2.92 tonnes to 125.5 tonnes in April.
Kazakhstan raised gold holdings by 2.02 tonnes to 98.19 tonnes in April.
Ukraine upped gold reserves by 1.4 tonnes to 30.607 tonnes in April.
Sri Lanka raised gold reserves by 2.177 tonnes to 7.807 tonnes in January. There is a delay in Sri Lankan gold reserve reporting to the IMF.
Central banks added 456.4 tons last year, the most in almost five decades, and will buy as much as 400 tons this year, the London-based World Gold Council estimates.
See how China only has 1.6% of all foreign exchange reserves in gold. That's why they're buying gold hand over fist. They export no gold and import hundred of tons per year. Why? Because they know the paper (fiat) money system can't go on forever, and when the music finally stops they want to have gold in their vaults.
The Russians are no different. Gold is their money of choice now. Check out this chart:
And since October 2011 they have added to their gold holding each month, except for one.
If central banks and governments are accumulating gold like it's going out of fashion, why do most Westerners still think it's a "dumb" investment? Maybe because people like Warren Buffett hates the stuff (in public at least) and he's not ashamed to tell the world. Buffett's long time business partner, Charlie Munger also recently said: "civilized people don't buy gold"
Start following the smart money and stop listening to the so-called "experts" - who don't always have your best interest at heart.