Central banks might put half of reserves into gold: WGC

Section:

By Jan Harvey
Reuters
via Forbes.com
Thursday, June 11, 2009

http://www.forbes.com/feeds/afx/2009/06/11/afx6534033.html

LONDON -- Central banks may be justified in increasing their gold holdings to 40 to 50 percent of their reserves, a senior executive of the industry-funded World Gold Council said on Thursday.

"Central banks are justified in having high gold weightings. They are justified in having a 40-50 percent weighting in gold," Marcus Grubb, the WGC's managing director of investment, research, and marketing told delegates at a conference organised by ETF Securities.

He said the current macroeconomic environment supported gold buying: "It is not only about the dollar, not only about diversification, but also about future inflation," he said.

There were signs that a number of Asian central banks were adding to their gold reserves, he added.

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