It was recently learned that the Bank of Mexico earlier this year bought nearly 100 tons of gold, equivalent to around $4.6 billion at the current per ounce price. In recent history, no other central bank has ever made as large a gold purchase, but it is quite possible that Mexico won't be the last emerging country to use bullion as a hedge against a declining dollar.

Since January, the U.S. Dollar has lost nearly 10% of its value against a basket of major currencies, trading close to a record low.It was reported that several members of the BRICs, notably Russia, China and India have all added significantly to their respective reserves of gold over the past few years. In 2009, India made a large gold purchase of 200 tons, directly from the IMF. At the same time, China reported that it had bought some 454 tons during the previous six years. Russia also admitted to purchasing almost 400 tons from the open market during the last five years.

Gold has suffered a strong fire sell in latest days shedding more than 100$ of its value , falling from 1575 record all the way to 1,470 and below on a space of 4 days.Most attribute this to the CME lasted move to raise margin required for Silver which pushed the entire metal composite sharply down wiping of crowded buys on Gold Silver and copper.

However some analyst suggest this is a correction in a long term bullish trajectory.In fact metal analyst point on last year as turning point for the worlds' central banks, marking the first time in two decades that gold buying outpaced selling. Some analysts point out that that reversal has helped push the price of gold to its recent record high of $1,575.79 per ounce and will continue to push it to record highs.

According to one precious metals strategist, the latest sovereign gold purchase simply confirms the growing appetite among emergent economies to diversify away from their assets that are U.S. Dollar- or Euro-denominated. Last year, World Bank President Robert Zoellick suggested that any new international monetary system should include gold among its forex components.