The past 12 months have seen nation's central banks withdraw approximately 635 tons of gold from the Bank for International Settlements, according to the bank's annual report, cited by the Financial Times.
Released late last month, the report from the institution considered to be the bank for central banks notes the withdrawal of bullion not only is the biggest in the past 10 years but also states central banks augmented gold stockpiles during the year prior. The report accounts for April 1, 2010 through March 2011.
Motives for pulling out gold include central banks being turned off by low rates offered so they opted against lending their gold to the bank. Rather, the banks lending gold to the private sector run the possibility of discovering rates that are higher.
"As commercial banks' balance sheets have started to look better there may have been a switch back to lending to the private sector," Philip Klapwijk, executive chairman of consultancy GFMS, told the Financial Times.
At 3:45 p.m. on Tuesday, gold futures were about $7 from notching record highs of $1,577.40 per troy ounce, which was set this past May 2.
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