[miningmx.com] – THE world’s central banks were expected to add as much as 350 tonnes worth about $15bn to their reserves this year, said Bloomberg News citing World Gold Council data.
However, central bankers did not understand gold well and often mistimed their buying of bullion, said the news agency citing comments by US-based asset manager Michael Strauss.
“Central bankers have typically bought when you probably should be selling and selling when you probably should be buying,’ said Strauss who helps oversee about $25bn of assets as chief investment strategist and chief economist at Commonfund Group.
“It’s going to be a difficult market and sometimes the price of gold is driven by emotions rather than fundamental factors. Central banks have been bad traders of gold,’ Strauss said.
Central banks bought 535 tonnes of gold in 2012, the most since 1964, said Bloomberg News.
Russia is the biggest buyer, expanding reserves by 20% since prices reached a record $1,921.15 an ounce in September 2011. Gold slumped 31% since then, the news agency said.
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