Tuesday April 21, 2015, 10:37am PDT
Mineweb reported that according to a report from RBC Capital Markets, central banks are likely to keep buying gold in 2015, thereby supporting the price of the yellow metal.
RBC’s report states:
Overall, central banks have been net buyers of gold for 14 straight quarters to present, and the demand helped mitigate bullion’s losses in 2014. We forecast the central bankers could purchase a further 275 tons in 2015, which compares to 409 tons in 2014, the second-largest increase in 50 years.
Meanwhile, Mineweb adds:
In assessing China – which officially reports reserves of 1,054 tonnes – RBC assumes, as many, that the country has been piling up far more gold than publicly stated. Indeed, it puts China’s current reserves at 3,500 tonnes.
If so, that means China would be the third largest reserve holder of gold behind the US and Italy.
RBC also highlighted Russia’s appetite for gold. Russia’s central bank has been one of the largest buyers of gold among central banks doubling its position from 520 tonnes in 2008 to 1,208 tonnes in 2015.
RBC reckons the trend is set to continue.
It’s worth noting that since that article was published, Mineweb has released another article noting that Russia’s central bank added 1 million ounces of gold to its holdings in March following a two-month pause. Its total reserves now sit at 39.8 million ounces.
