Earlier today Gold Made Simple News attended the GFMS Gold Survey 2011 Update. At that event GFMS announced that they now see gold breaking the $2000 level before the end of the year – for a full look at what was said go here.
After going through the report one thing really jumps out – that central banks a massive buyers of gold this year. For all of 2010 net central bank purchases totaled 77 tons. For the first half of 2011 alone central banks snapped up some 216 tons and are expected to buy another 120 tons before the year is out.
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Clearly the dynamic of central banks being net sellers is long since dead and in fact central banks around the world are amassing gold at an ever increasing rate. If global central banks had so much ‘faith’ in the dollar would this be happening? Not a chance.
Oh, and bear in mind this is only what central banks have ‘fessed’ up to with GFMS – in reality that total i likely to be much, much bigger.