Newscaster 1: Has soared to record highs on news that India's Central Bank has bought 200 tons of it from the International Monetary Fund. The $6.7 billion purchase over the last two weeks of October, surprised the markets.
Neena Mairata: It was the biggest single Central Bank purchase over such a short period in the last 30 years. The price of gold jumped by more than $30 U.S. To an all time high of $1087 an ounce. The country has, until now, been the biggest consumer of the precious metal, primarily, because of its deep-seated affection for jewelry and gold ornaments. Experts say India's interest in diversifying into bullion is a sign that gold's run has only just begun.
Newscaster 2: For a while there, there had been sort of a philosophy that gold no longer was relevant in a modern society, but with all the printing of money that is going around the world, gold has become the ultimate safe haven. And has become the safe asset of choice, not only by individuals, but by Central Banks.
Neena: The change of attitude appears to be due to a shift in strategy by investors to hedge against a weaker dollar, and the threat of inflation. It also heightens speculation that there may be more official purchases.
Newscaster 2: The Chinese we know, are very worried about holding so much U.S. denominated debt and cash. You've got the middle East petrol dollars that need to be recycled into a store of wealth, that they can rely upon. They'll be no shortage of takers.
Neena: The IMF plans to sell about 400 metric tons of gold this year in an effort to shore up its finances, and increase lending to developing countries. India's purchase represents about half of that amount. The question now is, who will buy the rest of the IMF gold? Neena Mairata, World News, Australia.