Email to Friends
Comment (Gold prices surged to a new record today on the news that India's central bank had bought 200 tonnes of the precious metal.
It is the biggest single central bank purchase of gold made public in over 30 years.
Between October 19 and October 30 the Reserve Bank of India purchased $7.5 billion worth of gold, 200 metric tonnes.
"This is a sea change in the gold market on the central bank front, the whole equation has changed from central banks over a decade or two you're counting them as sellers, and now we're starting say maybe central banks are going to be buyers," said the author of "Ages of Gold", Timothy Green.
"And in terms of a gold producing country like Australia and other places, that is a very significant change."
He says the global financial crisis has made central banks rethink how they store wealth and hedge against inflation.
"In the biggest economic upheaval that we've seen since the 1930s, the word nowadays is security."<...
