After all, one explanation might necessitate another, and then secret intervention in the gold and currency markets might be compromised. Our German friends should pounce on this. But congratulations to Bloomberg News for having the wit and initiative to ask the German central bank about the reduction in its gold reserves. Questioning central banks about their gold reserves and their activities in the gold market doesn't happen much with mainstream financial news organizations. Imagine if it became a habit.
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Brazil Boosts Gold Reserves to the Highest in More Than 11 Years
By Nicolas Larkin Bloomberg News Wednesday, November 21, 2012
Brazil raised its gold reserves for a second month in October to the highest level in more than 11 years as emerging nations from Kazakhstan to Russia boosted holdings by more than 40 metric tons.
Brazil's holdings expanded 17.2 tons last month to 52.5 tons, the most since January 2001, according to data on the International Monetary Fund's website. The country's 1.7-ton purchase in September was the first since December 2008. Kazakhstan's holdings increased 7.5 tons, Russia added 0.4 ton, and Turkey's reserves rose 17.5 tons, the data show. Germany, the second-biggest holder, after the U.S., cut gold holdings by 4.2 tons, the first reduction since June.
Central banks have been expanding reserves as the metal heads for a 12th straight annual gain and investors hold a record amount in bullion-backed exchange-traded products, data compiled by Bloomberg show. Nations bought 373.9 tons in the first nine months of the year and full-year additions will probably be in the "bottom end" of 450 to 500 tons, the London-based World Gold Council estimates.
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