CBGA Gold Sales Meager in First Year
Source: Mineweb, Lawrence Williams (9/27/10)
"Countries buying gold covertly. . ."
At the moment, the only significant gold seller is the IMF with its mandate to sell 400 tons of which well over half has already been purchased—virtually all by Asian Central Banks. With the dearth of sales by the Europeans, and continuing purchases by other Central Banks, this has provided good support for the gold price as supply from the Central Banks has more than dried up. Indeed there is a suggestion that some Central Banks are hiding their purchases of gold through internal accounting measures so as not to overly disrupt that market.
China here is a particular case in point. Any overt Chinese buying on the open market would almost certainly give the gold price a huge boost, which is not necessarily in the immediate interests of a Central Bank trying to supplement its gold holdings. How many more may be using similar methods to hide their dealings in the market?
Other covert ways in which countries may be purchasing gold are via sovereign wealth funds, which are known to be investing in gold ETFs and other gold-related instruments, and perhaps in bullion itself. Such purchases will not show up in official gold reserves.