It’s only fitting that with today being Cinco de Mayo I’d be writing a post about Mexico. Apparently, our neighbor to the south is just getting over an extended bout of gold fever. From Jack Farchy of the Financial Times (UK) this morning:
Mexico has quietly purchased nearly 100 tons of gold bullion, as central banks embark on their biggest bullion buying spree in 40 years.
The purchase, reported in monthly data published by Mexico’s central bank, is the latest in a series of large gold buys by emerging market economies intent on diversifying reserves away from the faltering US dollar.
China, Russia and India have acquired large amounts of gold in recent years, while Thailand, Sri Lanka and Bolivia have made smaller purchases.
Farchy brought up an often-overlooked fact in discussions about a supposed “gold bubble.” He noted:
Central banks became net buyers of gold last year after two decades of heavy selling – a reversal that has helped propel the price of bullion to a series of record highs.
As a result of Mexico’s purchase, central banks, sovereign wealth funds and other so-called “official sector” buyers are on track to record their largest collective purchase of gold since the collapse of the Bretton Woods system, which pegged the value of the dollar to gold, in 1971.
Farchy, Jack. “Mexican Central Bank Quietly Buys 100 Tons of Gold.” Financial Times (UK). 5 May 2011. (http://www.cnbc.com/id/42909399). 5 May 2011.
No comments yet.
Leave a comment
Christopher E. Hill, Editor
11,976 Visits in June
454,328 Visits from
Please Rate this Blog HERE
- Final Vote Next Tuesday On Niles, Illinois, Gun Store And Range
- Does Robert Shiller See ‘Froth’ In U.S. Housing And Stocks?
- USGS Updates National Seismic Hazard Maps
- Downtown Chicago Could Receive Resilient Electric Grid
- Peter Schiff On Gold: ‘We’re Going To Have A Big Rally Probably Beginning Here In The Second Half Of 2014’
- Detroit Police Chief: ‘Good Detroiters Are Armed And Will Use That Weapon’
- Chicago Train Passengers Robbed At Gunpoint
- Jim Rogers: Some Currencies, Real Assets Could Shine When Coming Bust Arrives
- Illinois Governor Pushes Ban On ‘Assault Weapons,’ ‘High-Capacity’ Ammo Magazines
- Chicago’s Gun ‘Control’ Fetish Costing City Big Bucks
- Editor on 82 Shot, 14 Killed In Chicago Over Long July 4 Weekend
- Derek @ MoneyAhoy.com on 82 Shot, 14 Killed In Chicago Over Long July 4 Weekend
- Editor on Dick Cheney Warns Of Massive Terrorist Attack On U.S. Before Decade Is Out
- tj & the bear on Dick Cheney Warns Of Massive Terrorist Attack On U.S. Before Decade Is Out
- Editor on U.S. Senator Michelle Obama (D-IL)?
- Bill Taylor on U.S. Senator Michelle Obama (D-IL)?
- Not Prepared: 17 Signs That Most Americans Will Be Wiped Out By The Coming Economic Collapse | All Self-Sustained on The Percentage Of Adult Americans That Own Investment Gold Is…
- Editor on Deadly MERS Virus Lands In Chicago, Discovered In Indiana
- Editor on Video: SHTF In Venezuela
- tj & the bear on Deadly MERS Virus Lands In Chicago, Discovered In Indiana