Has the time to sell gold now arrived? Before you start dumping all of your gold, you might want to check out what central banks all over the globe have been doing. There is some serious hoarding of gold that is going on. For most of the past two decades, central banks have been net sellers of gold, but now many of them are gobbling up gold as fast as they can. So why would they be doing this if gold was not a good investment? Yes, we did see gold, silver and oil all take a very serious tumble today. That is what happens sometimes - global financial markets are so unstable at this point that even a piece of relatively minor news can set off a bit of a panic in one direction or another. But the long-term trend for gold has been up, up, up and it look like the central banks around the world continue to expect the price of gold to soar over the long-term.
The central bank of Mexico gobbled up almost 100 tons of gold during February and March alone.
So how much is 100 tons of gold?
The following is how The Economic Policy Journal is describing the significance of this purchase....
The purchase is one of the largest by a central bank in recent history. The gold is worth $4.6 billion at current prices and is equivalent to about 3.5 per cent of annual mined output
But it isn't just Mexico that is buying up gold. As an article on Bloomberg recently noted, countries such as Russia and Thailand have also been very busy hoarding gold this year....
Russia increased its reserves by 18.8 tons to 811.1 tons in March and Thailand expanded assets by 9.3 tons to 108.9 tons in the same month
As faith in the U.S. dollar and other major global currencies falters, the big central banks around the globe are making sure that they have plenty of precious metals on hand.
According to Business Insider, the following are the top ten gold hoarding countries in the world....
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