Big buyers are starting to enter the gold market:

MEXICO’S Central Bank has been Buying Gold as a means of reducing its exposure to currency depreciation risks, say analysts.

The Banco de Mexico bought 93.3 tonnes of Gold Bullion in February and March, according to data released by the International Monetary Fund. It had previously held 6.9 tonnes.

The central banks of Russia and Thailand also made significant gold purchases over the same period, of 18.8 tonnes and 9.3 tonnes respectively.

“Gold is seen as one way in which to diversify away from the Dollar- or Euro-denominated assets,” said Matthew Turner, precious metals strategist at Mitsubishi, the Japanese trading house.

“Mexico’s gold accumulation confirms the demand of emerging market central banks to diversify their reserves,” he said. “They will be the big buyers for years to come.”