Caledonia Mining CALVF - Gold buying by emerging markets is just getting started.
It will pick up steam as countries rush to protect their respective currencies against Bernanke and the US government, who are exporting inflation through the monetization of US debt.
Note, that many emerging market currencies are backed by the fiat USD; so when the fiat USD money supply expands, theirs must too or they risk currency appreciation that would price their products out of the global market.
The Gold ownership of other emerging countries, which account for more and more of global GDP, is negligible, but increasing.
For decades, countries have bought fiat US dollars, the world's used to be reserve currency; however, with Bernanke on a mission to spark the economy at all costs and increased inflation knocking on the door, central banks cannot afford to stand by the side, hoping and praying the US will do them any favors.
Perhaps this is why the Federal Reserve is expected to buy upwards of 90% of all new US debt issued in 2013.
The old buyers of US debt are not coming to the table anymore. It quickly becomes easy to understand why central banks are tripping over each other to accumulate as much Gold as possible without spiking the price and giving way to a full on stampede.
Gold is the only non-manipulated currency and will be the final equalizer when runaway inflation or failed monetary policies finally force governments to act responsibly.
Countries that hold Gold and have a higher percentage of their currency backed by Gold will be in far more advantageous bargaining positions; hence the record accumulation.
The currency wars wreaking havoc across the world are only going to intensify. When central banks expand their money supply, by definition, it creates inflation.
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