In a surprise move Iraq purchased 36 metric tonnes of gold in March valued at over $1.5 billion, the largest acquisition of gold by a single country in the last three years. The bold move is attributed to a desire of the Central Bank of Iraq to take measures to stabilize the nations currency, the Iraqi dinar, versus foreign currencies, the Iraqi government announced via email. As of last August, the country owned just under thirty tons of gold bullion, and this month’s purchase was the largest national acquisition of gold since Mexico’s purchase of just under 80 metric tonnes in 2011.
The sizable gold purchase now makes Iraq the 40th largest gold holding country in the world, and the move is an early signal that middle eastern central banks are now looking to establish larger positions in gold. Mexico now holds over 120 tons of the yellow metal, and purchases such as these from Iraq and Mexico will only push up demand for gold and contribute to a rise in prices in 2014.
For the week ahead, gold investors will continue to focus on U.S. economic numbers coming out and how they will impact the dollar, treasury yeilds and ultimately gold, as wells as the ongoing conflict between Russia and Ukraine. With gold now back over $1300 an ounce, National Coin Broker is looking for a move higher in the coming weeks and we continue to encourage our clients to establish or build their position in precious metals by buying gold and silver.
Now is the time to buy gold or silver
If you are interested in buying gold and/or silver to diversify to your investment portfolio, we encourage you to download our Free Investors Guide to Rare Coins and Precious Metals. We put this informative guide together to provide current and potential investors with the benefits and advantages of investing in precious metals and rare coins. It’s free and available for immediate download.