From National Interest
''Just a few years ago, central banks were selling their gold. Between
1999 and 2002, Gordon Brown, then England’s chancellor of the exchequer,
sold off 395 tonnes, half of the U.K.’s reserves. Between 2002 and
2009, the world’s central banks were net sellers of over 3,000 tonnes of
But since 2010, central banks the world over have “turned on an
Eagle” (to “coin” a new phrase), becoming huge net buyers of gold,
buying back more than a thousand tonnes.
Why the turnaround, and at prices much higher than those at which the
central banks sold? Because the rules have changed: The Basel Committee
on Banking, the body that sets the standards followed by the
industrialized world’s central banks (and the commercial banks they
oversee), has reclassified gold bullion as a “tier one asset.''