"Countries actively adding to their official gold holdings remains heavily concentrated in creating markets, which partly reflects the scale of development in the reserves of those markets over current years," WGC wrote its newest quarterly report on gold demand trends.
"As the official reserves of those nations swell, with their heavy emphasis on U.S. dollar and euro-denominated assets, the need for diversification also increases."
Central banks have been the net purchasers of bullion since the second quarter of 2009, amassing almost 1,100 metric tons to their gold reserves since, nearly reversing the 1,143 metric tons of net sales in the preceding 3 years, based on information from the organization.
Ric Spooner, chief marketplace analyst at CMC Markets expects this trend to continue, noting that there's a, "broad tendency for the U.S. dollar to decline in worth using the Federal Reserve's QE (quantitative easing) policies. Assets like gold are a hedge against debasement against foreign exchange reserves." Rare Coins, Silver Coins, Gold Coins >> http://www.silver-
Regardless of widespread speculation that China would overtake India to turn out to be the world's biggest consumer of gold in 2012, the South Asian nation retained the top spot, driven by a resurgence of demand throughout the second half. Last year, consumption in India totaled 864.2 metric tons, compared with 776.1 metric tons in China.
Although India saw a decline in customer purchases in the first six months of the year, as import duty hikes along with a weak rupee took a toll, demand was revived in the second half of the year, supported by a rally in gold prices, religious festivals and purchasing in anticipation of further gold import duty hikes.
Last month, the Indian authorities raised the tax on gold imports to 6 % from 4 %, in an effort to curb demand for the yellow metal, which it has blamed for the rise in the country's present account deficit. The rush to create gold purchases in December means demand might stagnate in the first quarter of 2013, WGC stated.
In China, indicators of financial improvement spurred demand for gold, generally utilized as a hedge against inflation, nevertheless expectations are to get a "steady firming of demand instead of for powerful development,"
India and China continue to be the biggest customers of gold jewelry, producing 56 % of international demand in 2012. Gold jewelry produced up 43 % of general demand for the precious metal in the same year. Experts and analysts recommend buying gold today while the prices are affordable and supply is available. How High Will Silver Go? Learn More >> http://silver-