Wednesday, November 21st 2012 - 20:07 UTC

Brazil increases gold holdings to 52.5 tons, according to the IMF

Brazil increased gold reserves for a second month in October to the highest level in more than 11 years as emerging nations from Kazakhstan to Russia boosted holdings by more than 40 metric tons.

The 1.7-ton purchase in September was the first for Brazil since December 2008

Brazil’s holdings expanded 17.2 tons last month to 52.5 tons, the most since January 2001, according to data on the International Monetary Fund’s website. The country’s 1.7-ton purchase in September was the first since December 2008. Kazakhstan’s holdings increased 7.5 tons, Russia added 0.4 ton and Turkey’s reserves rose 17.5 tons, the data show. Germany, the second-biggest holder, after the US, cut gold holdings by 4.2 tons, the first reduction since June.

Central banks have been expanding reserves as the metal heads for a 12th straight annual gain. Nations bought 373.9 tons in the first nine months of the year and full-year additions will probably be in the “bottom end” of 450 to 500 tons, the London-based World Gold Council estimates.

Germany holds 3,391.4 tons, the IMF data show. The Bundesbank declined to comment on the past month’s gold reserves, spokeswoman Susanne Kreutzer said, adding that the central bank reserves 7 tons a year to sell to the Finance Ministry for minting. The year started on Sept. 27, she said. The Bundesbank sold about 0.7 ton to the Finance ministry in June and 4.7 tons in October 2011 to mint commemorative coins.

Turkey’s bullion holdings have increased due to it accepting gold in its reserve requirements from commercial banks. Belarus expanded holdings by 0.1 ton in October and Mexico reduced them by 0.2 ton, the IMF data show.

Gold accounts for about 0.5% of Brazil’s total reserves and 20% of Kazakhstan’s, according to the World Gold Council. That compares with more than 70% for the US and Germany, the biggest bullion holders, the data showed.

Central banks buying of gold have been a major support to gold prices, which hit record highs a year ago and are still holding above 1.700 dollars an ounce, more than double their level of five years ago.

18 comments Feed

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1 briton (#) Nov 21st, 2012 - 08:47 pm Report abuse
i got more gold than that in me piggy bank.
[wishfull thinking]

the brits are about 17th place i belive.
2 Condorito (#) Nov 21st, 2012 - 09:18 pm Report abuse
Foolish Mr Brown sold off a lot of UK gold at the worst possible time.

Gold is beautiful and intrinsically valuable. Sensible countries keep a significant % of their reserves in gold.
3 briton (#) Nov 21st, 2012 - 09:25 pm Report abuse
sadly mr brown was not sensible.
he was a fool.
4 ProRG_American (#) Nov 21st, 2012 - 11:17 pm Report abuse
Hold on to it tight before the IMF takes it or the UK finds an excuse to invade you and steal it.
5 Fido Dido (#) Nov 22nd, 2012 - 04:46 am Report abuse
Brazil's gold is in Brazil, they have nothing to worry about, and by the way, they will keep on buying..all part of the “currency war”. All “ermerging” nations are buyers.

“the brits are about 17th place i belive.”
Keep believing, most of the gold at the bank of england DOES NOT belong to the UK..:D..hint: The dutch and Germans are going after their gold that's being “protected” by the Fed and BOE....:D..let's see if they will get their gold back..(nah, don't think so, foolish to trust them). Fort Knox: No gold, but a HP printer (printing fiat money unlimited (QE)
6 ChrisR (#) Nov 22nd, 2012 - 10:20 am Report abuse
Just to bring a degree of reality here: 52.5 Imp Tons is 53.357 metric tonnes ans a gold cube weighing this amount would be just 1.4 M on all three sides, or for the LatAms (I will include Dildo in this) 140 cm per three sides.

Best investment I ever made was in gold sovereigns, but lots and lots of them (no VAT, just capital gains).
7 Rufus (#) Nov 22nd, 2012 - 11:34 am Report abuse
It has to be said it's a bit of an odd time to be buying gold from my perspective. About six years ago would have been a good time to (when the price was about 1/3 of what it is now).

Admittedly the price has been higher than it is now, but not by much. I always thought the way of these things was to buy low and sell high?
8 ChrisR (#) Nov 22nd, 2012 - 01:18 pm Report abuse
@7 Rufus

You buy on dips and sell on rises.

No serious gold buyer waits six years, and you have to factor in the inflation during that time.
9 Condorito (#) Nov 22nd, 2012 - 01:55 pm Report abuse
“No serious gold buyer waits six years, and you have to factor in the inflation during that time.”
Quite right. A central bank doesn’t buy gold to make a quick buck (although it doesn’t hurt to do so). It is a sensible long term strategy. If you hold heaps of USD you are hostage to the Feds printer.

Venezuela recently repatriate gold from London without any problem. Are you seriously suggesting that the Dutch and Germans have requested gold from the BoE and the latter is refusing to hand it over! Where has this been reported?
10 Rufus (#) Nov 22nd, 2012 - 01:55 pm Report abuse
@8 Chris

Fair enough, and in truth I could probably tell you more about gold intermetallics than I could about gold trading...
11 Nostrolldamus The 2nd (#) Nov 22nd, 2012 - 04:10 pm Report abuse
Bye b ye USD
12 ChrisR (#) Nov 22nd, 2012 - 07:07 pm Report abuse
What for, AG Pesos?

Ha, ha, ha to the power googol!
13 Fido Dido (#) Nov 22nd, 2012 - 07:23 pm Report abuse
“Venezuela recently repatriate gold from London without any problem.”
They got it back, because they HAD no choice and bought it on the openmarket. Source, insidernews at zerohedgde, lars shall (gold market manipulation explained) and on the keiser report (RT).

“Are you seriously suggesting that the Dutch and Germans have requested gold from the BoE and the latter is refusing to hand it over! Where has this been reported?”
Yes I am serious, just read (see link, Keiser Report). If the Germans were refused to see their own gold by the Federal Reserve, do you really believe that the silly (more idiots) government of my country (The Netherlands) will see their gold? Answer is highly..NO. Only fools believe/trust the criminals in London and NYC. There is NO GOLD..unless they buy it on the openmarket what will make the price go skyrocket and will end the PONZI FIAT SCHEME.
14 ChrisR (#) Nov 22nd, 2012 - 09:26 pm Report abuse
@13 Fido Dildo

You need to go and have a lie down in a dark room with a young lady or whatever gets you off.

You are one weird character if you believe that the UK will steal some other country out their gold.

I thought you were in the USA? Another hypocrite then!
15 briton (#) Nov 23rd, 2012 - 12:12 pm Report abuse
we may not , at this moment in time have lots of gold,
thank you mr brown,
but in time hopefully we will grow the pile again,

just a thought.
16 Rufus (#) Nov 23rd, 2012 - 03:42 pm Report abuse
@12 Chris

Depends what you want them for, Pesos themselves presumably are soft, fairly resiliant and very plentiful (i.e. soft, strong and very very long)
17 British_Kirchnerist (#) Nov 23rd, 2012 - 11:51 pm Report abuse
Yet more good news for Brazil =)
18 briton (#) Nov 24th, 2012 - 07:30 pm Report abuse
And even more great news,
Google has updated their maps.
Bad news is
Argentina’s disappeared .lol.

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