Eseandre Mordi
⬤ Brazil bought another 11 tonnes of gold in November bringing the three month total to 43 tonnes and lifting its holdings to 172 tonnes. The central bank's new data show the country is steadily rebalancing its reserves.
⬤ Purchases also occurred in September besides October - the move is not an isolated event. Many central banks now buy gold - Brazil takes part on a large scale. Gold trades easily, holds value and stays steady when other assets fall.
⬤ Emerging economies now review reserve plans or Brazil's steady purchases may lead others to raise gold weightings. Central banks stock gold when they expect economic turbulence or when they wish to guard against currency moves.
⬤ Brazil's 172 tonnes do not place it among the largest holders - yet the steady buying reveals a deliberate shift toward long term stability rather than short term agility. As global finance changes and currency strains increase, Brazil adds a larger buffer - other emerging markets watch closely.
Eseandre Mordi
