Rockwell Advisors: World Gold Council expects central banks to continue gold buying.

Oct. 27, 2011 - PRLog -- In 2011, net purchases by central banks have so far totaled 220 metric tons, according to data available at the end of September, compared with 74 tons in all of 2010, Natalie Dempster, managing director of government affairs at the World Gold Council told Rockwell Advisors recently. Emerging economies including Russia, India and China will remain the largest buyers, she said.

Central banks are expanding reserves for the second consecutive year as prices head for an eleventh straight annual gain. Futures in New York touched a record $1,923.70 an ounce on Sept. 6 as wavering economies and economic turmoil heightened the appeal of the precious metal as a safe haven asset.


"The central banks in emerging markets have seen a sharp increase because of the financial crisis and rebalancing of their assets," Dempster told Rockwell Advisors. "European central banks have tightened their sales after having been very large sellers."


About 1.1 tons of gold were sold by European central banks in the year to Sept. 26, and the International Monetary Fund sold 52.2 tons, according to data available from the producer-funded council. The total is 61% less than in the 2010. Central banks in Europe are limited to sales of 400 tons each year until the end of September2014 under an annual agreement with the IMF Rockwell Advisors has been informed

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