Mexico sells US dollars and buys gold bullion

Mexico sells US dollars and buys gold bullion
The Central Bank of Mexico announced the purchase of about 100 tons of gold in recent months, the equivalent to 4% of the bank's international reserves.Almost a hundred tonnes of gold in a couple of months. The purchase of the Mexican Central Bank, according to the statistics released by the IMF, this massive purchase however was not enough to halt the correction of the ingot, which yesterday - driven by the collapse of the silver, falling by almost 20% in three sessions - is back up about $ 1,490 an ounce. However, the news was welcomed by analysts as one of the most obvious manifestations of a revolution that is going through the gold market, as well as a further significant signal of lack of confidence in the greenback, now slipping in values ​​close to historic lows (the descent was continued yesterday, in response to disappointing economic data from the United States, including in particular the sharp decline in April ISM services index and orders).
After two decades of prevailing sales, the gold reserves of central banks have started last year for the first time to grow, thanks to the purchase of many emerging countries, including China, Russia and India. Mexico, however, is moving in a particularly aggressive way , at the end of January its gold reserves amounted to only 220 thousand ounces, two months later it had risen to 3.2 million ounces (or 100.15 tonnes), an amount equal to about 3.5% of world mining production and at the current prices is worth about $ 4 billion.
The Mexican stocks reached in April, the historical record of $ 128 billion, so the gold is still a marginal fraction of the total: just over 3%, compared to 70% in the case of the USA, first in world rankings . The fact that the purchases have taken place in a time when the gold price already interrelated one record after another is significant, however, that the mood across the market. Probably they think that makes sense because they are convinced that the dollar will depreciate again. A lack of confidence that weighs much, given the strong economic ties and trade with neighboring United States.
The statistics released yesterday by the IMF show that in the first quarter Russia and Thailand have also bought gold. Russia added 18.8 tons to its reserves, while Thailand has increased by 9.3 tonnes to 108.9