Taiwan buying gold in bulk

In an effort to try to reduce its trade surplus, Taiwan is considering purchasing up to one-quarter of the world’s annual gold production, the news agency Reuter reports.

Taiwan, which has foreign exchange reserves of $75 billion(US), is reported to have bought 69 tonnes of gold, worth about $1 billion, during the first two months of 1988. The nation’s total gold reserves are said to be worth $4.5 billion at current prices.

Securities firm Shearson Lehman is forecasting total gold production of 1,449 tonnes this year by non-Communist countries.