India purchased 200 tons last year, and China was rumored to be the next big buyer of gold from the IMF. This unconfirmed article says the Chinese just stepped up to the gold window.
http://english.pravda.ru/business/finance/25-02-2010/112369-china_gold-0
If true, this is potentially bullish for gold. For 20 years, central bankers have been net sellers of gold. Last year, they flipped and became net buyers.
As of today, Reuters could not confirm the validity of the source--even as the price of gold appreciated 1%.
http://www.reuters.com/article/idUSTRE61L3UQ20100225?loomia_ow=t0:s0:a49:g43:r1:c0.179245:b31125058:z0
Disclosure: long gold mining shares
Friday, February 26, 2010
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