Brazil Doubles Gold Reserves as Central Banks Buy Bullion In Nov 2012

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Source: Bloomberg – (21 Dec 2012) Brazil Doubles Gold Reserves as Central Banks Buy Bullion

Notable Excerpts:

Brazil boosted gold reserves for a third month in November to double the country’s holdings since August as central banks from Russia to Belarus and South Korea add the metal to diversify their assets.

Brazilian holdings expanded 14.7 metric tons in November to 67.2 tons, the most since November 2000, according to data on the International Monetary Fund’s website. The country bought 17.2 tons in October after adding 1.7 tons in September, the first increase since 2008.

Central banks have been expanding reserves as the metal heads for a 12th annual gain and investors hold a record amount in bullion-backed exchange-traded products.

The U.S., Germany, Italy and France hold more than 70 percent of their reserves in gold, according to data from the producer-funded WGC.

In Asia, the Bank of Korea increased gold reserves 20 percent last month to diversify investments, boosting holdings for the fourth time since June 2011, according to a statement Dec. 5. Gold is a physical, safe asset, the Bank of Korea said.

Holdings in gold-backed ETPs reached a record 2,632.516 tons yesterday, and are 12 percent higher this year, data compiled by Bloomberg show.

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