Central banks went on the biggest spending spree in 50 years, buying the most gold since 1964 last year. Their high stockpiles of devalued metal probably makes them the biggest losers of the gold slump.
Central banks have bought the most gold since 1964 in 2012 just before the precious metal took a plunge on the stock market, and are now stuck with record losses and a stockpile of devalued gold. The World Gold Council reported central banks added 534.6 metric tons to worldwide reserves, and then the price fell.
The banks are now stuck with huge stocks and bear market prices: in 2013 gold has tumbled 14%.In textbook economic terms, they bought high and will most likely have to sell low.
The Gold Council expects purchases of 450 to 550 tonnes in 2013.
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