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5/4/11

Mexico's Central Bank buys 100 tonnes of gold bullion

The main LatAm goldbug story out today is that Mexico has finally done the right thing and its Central Bank is a buyer of gold. During February and March, The Mexico Central Bank (known as Banxico) ploughed more than U$5Bn into buying around 3.25m troy ounces of gold (that's 100 metric tonnes). So according to those preliminary numbers, Banxico paid over U$1,500 for each ounce (1538). Apparently the FT broke the story, but we don't link to them cos they have a stupid firewall. Instead, hear more about the news via this Spanish language link.

UPDATE: On rummaging round the Banxico website it's not easy to spot the datapoint, but it's worth noting here that Mexico's total international currency reserves (i.e. us dollars) stood at U$125Bn as at April 2011 so the gold bullion purchase works out as 4% of Mexican reserves. Hardly a game-changer in itself, so goldbugs will be better advised to obsess over the trend.