THE WORLD'S central bankers consider Gold Bullion a more attractive asset than a year ago, even though the Gold Price is around 10% higher, according to a poll published this week.
Central Bank Publications surveyed 54 central bank reserve managers, who are responsible for around $6 trillion – around half of total global reserves. Of those polled, 71% said they consider Gold Bullion a more attractive investment than it was last year.
"The fall-out from the financial crisis continues to be felt in central bank reserve portfolios," the survey reports.
"Overwhelmingly, reserve managers feel their central banks need to diversify, or in some cases resume more active diversification."
Central bank net purchases of Gold Bullion in 2011 were 439.7 tonnes, according to World Gold Council data. Last year saw central bank Gold Bullion purchases at levels not seen since the Bretton Woods fixed exchange rate era that broke down in the early 1970s.
Central banks are expected to continue to be net buyers of Gold Bullion in 2012, although volumes may not reach last year's levels, leading precious metals consultant Thomson Reuters GFMS said last week at its 'Gold Survey 2012' launch.
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