Central banks of the world are buying gold at a rate unseen since the ’60s. How can this move be explained? Developing nations hold only 5% of reserves in gold whereas developed nations hold around 25%. http://DailySilverUpdate.com
Emerging market central banks have boosted their gold holdings steadily in recent years. Central banks globally are on track to add $15 billion to their gold reserves this year alone, according to World Gold Council data. That’s the biggest central bank gold buying binge since 1964.
Since 2011, Russia has been the biggest buyer, expanding reserves 20 percent by adding 171 tons of gold. South Korea expanded its gold reserves seven-fold in two years, buying 65 tons. Turkey bought an additional 371 tons, while Kazakhstan nearly doubled its reserves by acquiring another 67.2 tons.
To put this seismic shift in central bank demand for gold in proper context, consider that gold accounts for an average of nearly 25 percent of international reserves among advanced economies.
For the U.S., gold accounts for 73 percent of reserves. Germany keeps 69.8 percent of its reserves in gold. France holds 67.6 of reserves in gold, and the European Central Bank, 29.2 percent. China russia and india all have very low reserves.