Taiwan in market for more gold

International securities firm Shearson Lehman Hutton reported recently Taiwanese reserves in May stood at an all-time high of 421 tonnes.

According to Shearson, the last buying program the Taiwanese government initiated resulted in gold purchases worth 8% of the nation’s total foreign exchange reserves, since reduced to 7% because of the growth of the economy.

Taiwanese reserves currently are worth about $79 billion(US), and Shearson calculates that raising reserves again to 8% would require the purchase of 72 tonnes gold valued at $400 per oz, or 105 tonnes at $375 per oz.

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