November 4, 2009
• "The fall in the U.S. dollar seems to be pushing all the central banks to strengthen their portfolio with gold," said N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy in New Delhi. "Gold is a safe store of value compared to the U.S. dollar."
• "The most important thing is that people want gold even at these prices," said Ghee Peh, head of mining research, with UBS AG in Hong Kong. "There's good support for prices for now" from the IMF’s disposal of bullion, he said.
• "There seems to be consensus among the central banks that it’s better to cut down on currency holdings and diversify into assets like gold, which has upside potential," Krishna Reddy, a precious metal analyst at Way2Wealth Commodities Pvt., said in Mumbai. "The Reserve Bank of India gold purchase is a clear reflection of this belief."
• "Gold production has been declining for the past seven years, while demand, particularly the investment demand, has been growing steadily," Way2Wealth’s Reddy said. "Central banks and even ordinary investors want to own more gold."