Fearing heavily gyrating currency values and the falling U.S. dollar, many nations are diversifying their reserves into gold. South Korea this week became the latest nation to disclose this as it recently doubled its gold holdings.
In 2011, Mexico, Russian and Thailand have been major buyers, and in the last year, India confirmed also being a major buyer. And surely, many other large nations across the globe have taken this extreme step to protect themselves from declining values in paper currencies and from world economic upheaval.
What does that tell us? That nations with vast resources and a conservative outlook, are taking steps to protect themselves. Their vehicle of choice is a metal mankind has historically gone to when turmoil became the order of the day, as it is becoming now.
Dick
To learn more, please see "Central Banks Join Rush to Gold," The Wall Street Journal http://online.wsj.com/article/SB10001424053111903520204576483223952488748.html?mod=googlenews_wsj
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