For the last nine years, sovereign nations and central banks have been vacuuming up the supply of “good delivery” gold (400 oz gold bars). Central banks have purchased record amounts of physical gold — at even a faster pace than just before the U.S. dollar was disconnected from gold (Nixon severed the gold-dollar tie in 1971).
ARE BANKS PREPARING FOR A GLOBAL RE-SET?
The gold-buying frenzy is related to the changing status of the dollar. Central bank gold demand is the highest since 1964 and the period of time leading up to the collapse of the London Gold Pool in 1968. The banks are systematically adding to their gold reserves in exchange for their dollar reserves.
As supplies of physical gold become available, countries such as Turkey, the Philippines, Ukraine, India, VietNam, Russia, South Korea, Sri Lanka, Kazakhstan, Argentina, Mexico, and China line up to take delivery. Continue Reading →