Why Is Mexico Buying So Much Gold?May 7, 2011 8:06 am
Well, here is something that doesn’t quite add up – Mexico’s central bank has bought some 93.3 tonnes of Gold in the months of Feb and March.
“Mexico’s buying of gold in February and March amounted to 93.3 tonnes of gold, and is one of the most rapid programs of accumulation on record. With reserves now just over 100 tonnes in total, the market is holding its breath to see if it is an ongoing buyer.
Mexico’s vigorous purchase of gold over the last two months surprised the market by its speed and size. For any central bank to buy 93 tonnes in this market is a clear statement that faith in the U.S. dollar is falling fast. We do expect other emerging South American nations to follow suit over time, alongside many of the world’s emerging economies. ”
Statistics Source: Gold News