Wednesday, May 4, 2011

Mexican Central Bank Jumps On Bandwagon

The Mexican central bank decided to join the gold-buying party by purchasing more than 90 tonnes of the metal for its reserves between January and March of this year.
Mexico now owns 100.15 tonnes of gold, data on the IMF website showed. At the end of January it held 6.84 tonnes.

Mexico's purchase is equivalent to about 3.5% of annual mined output....

It takes Mexico to 33rd place on the list of the world's top gold holders.
As the article indicates, the Mexican government held hardly any gold before that purchase. That's a lot like the Canadian central bank now.

Yes, gold reserves are coming back and the gold market has adjusted. Back in the 1970s, central banks tended to sell gold in the face of its bull market; as a result, they were mocked by goldbugs for being dumb. Now that gold is more normalized, goldbugs are welcoming them to the party.

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