Always cracks me up when I hear individual investors tell me “why would I want to buy gold? it doesnt give any returns?”

These self same individuals seem to tend to have no history of understanding generational wealth, and are not in the mindset of “protecting wealth they own”, but more of the mindset of trying to become someone with wealth to protect.

The change in Central bank behavior from sellers to buyer marks a sea change that history shows took 15 years to run its full course, the last cycle gold rose from $35 / ounce to $850 / ounce (an increase of almost 2500%).

But hey, gold doesnt give any returns.

Venezuela Central Bank to Increase Gold Purchases, Khan Says

By Corina Rodriguez Pons

March 5 (Bloomberg) — Venezuela’s central bank will boost its gold reserves this year and will buy more than half the estimated 20 metric tons of domestic production, bank director Jose Khan said today at an event in Caracas.

The central bank, which has about $16 billion of its $30.6 billion of reserves in gold, purchased 1.08 tons of gold from domestic mines in the first two months of this year after buying just 2 tons in all of 2009, said Khan, one of five directors at the country’s monetary authority.

“We’re going to increase our gold reserves and buy more local production,” Khan said today. “Our objective is to increase reserves and help develop the local gold industry.”

Venezuela’s central bank is planning to provide $250 million of financing for gold production this year in an attempt to boost non-oil exports. The bank, along with the Mining Ministry, plans to build a gold refinery, bank President Nelson Merentes told reporters March 3, without providing details.

Gold futures for April delivery rose $2.10, or 0.2 percent, to $1,135.20 an ounce on the Comex division of the New York Mercantile Exchange. The metal gained 1.5 percent this week.

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