So reports Ambrose Evans-Pritchard, here:
"[C]entral banks around the world bought more bullion last year in terms of tonnage than at any time in almost half a century.
"They added a net 536 tonnes in 2012 as they diversified fresh reserves away from the four fiat suspects: dollar, euro, sterling, and yen."
In dollar terms with gold at $1,600 the ounce, 536 tonnes is an allocation of roughly $30.26 billion to gold by central banks in 2012, conservatively speaking.
To put central bank demand in 2012 in its context, compare this from Reuters, here:
Jewellery buying, the largest demand segment, fell 4.4 percent to 1,885 tonnes [in 2012]. Global coin minting is forecast to have dropped to a four-year low of 199 tonnes, down 19 percent from the previous year. ... On the supply side of the market, mine supply is expected to tick up 1.5 percent to 1,389 tonnes in the first half [of 2013].
In other words, falling demand in jewellery and coin minting was offset to some extent by central bank buying in 2012, supporting the price of gold, which began the year near $1,600 and ended it near $1,650.
The bankers obviously saw 2012 as a buying opportunity in the wake of weak demand.
Separately, as I noted here, central bank purchases year over year in March 2012 had ramped up to 400 tons from 156 in the prior period.
Predictions last summer, when prices were at their 2012 nadir, that central bank purchases going forward would come in at roughly 375 tons max obviously underestimated the reality significantly, way over 40%.
To put central bank demand in 2012 in its context, compare this from Reuters, here:
Jewellery buying, the largest demand segment, fell 4.4 percent to 1,885 tonnes [in 2012]. Global coin minting is forecast to have dropped to a four-year low of 199 tonnes, down 19 percent from the previous year. ... On the supply side of the market, mine supply is expected to tick up 1.5 percent to 1,389 tonnes in the first half [of 2013].
In other words, falling demand in jewellery and coin minting was offset to some extent by central bank buying in 2012, supporting the price of gold, which began the year near $1,600 and ended it near $1,650.
The bankers obviously saw 2012 as a buying opportunity in the wake of weak demand.
Separately, as I noted here, central bank purchases year over year in March 2012 had ramped up to 400 tons from 156 in the prior period.
Predictions last summer, when prices were at their 2012 nadir, that central bank purchases going forward would come in at roughly 375 tons max obviously underestimated the reality significantly, way over 40%.
