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Some key facts

China is the leading gold producer
• Gold and other precious metals and commodities have risen sharply in recent years in the wake of financial turmoil.
• The last decade has seen the gold price increased six-fold in terms of U.S. dollars. Adjusted for a stronger exchange rate, gold price in ten years increased from about Skr100 000 to Skr363,000 per kg (Calculation of September).

• China is the world's leading gold producer with about 13 percent of total world production.
• The most important producing countries also include South Africa, Australia and the United States, each with 9 percent of the world market.
• Sweden's share of total world production in 2009 amounted to 0.2 percent. Sweden has Scandinavia's largest gold mine controlled by Boliden (Västerbotten), where between 1925 and 1967 some 128 tonnes of gold was produced.


Swedish central bank, the Riksbank is laying in gold while there are economic strains

Sunday, 20 November 2011
As many central banks around Europe and elsewhere dive in to buying gold during the debt crisis, the Swedish central bank – the Riksbank  is comfortable and seat on its 125 tons of gold in the vault.

Central bank around are buying to a level not seen recently for the past 40 years, while gold prices are at historically high levels. Only in the third quarter, net purchases of central banks were almost 150 tonnes of gold, according to the trade organization World Gold Council.


Initially in was reported that central banks in emerging countries where the ones leading the gold buying rush, including Russia, Bolivia and Thailand which have seen their gold holdings increased. However, the Swedish Bank or the Riksbank has no plans to either buy or sell gold.

“We started selling in 2004 and continued until 2009 which we have sold 60 tonnes of gold. Now we have125.7 tons left. There is no decision made on any new change in the gold reserve, but the Executive Board takes decisions each year on the asset composition we should have,” says Johan Moeschlin, portfolio manager at Riksbank Bank with responsibility for the gold.

When the Riksbank sold the gold price was much lower, between 400 and 1000 dollars per troy ounce of gold. During the financial crisis, the gold price then rose sharply to about 1800 dollars. The Riksbank's sales were primarily due to the desire to reduce the risk because the gold price can vary greatly.

“It was mainly for better risk diversification for less risk. The gold is more risky than government bonds,” says Moeschlin.
By Scancomark.se Team

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