The demand for gold is rapidly rising. For the first time in many years central banks are now net buyers of gold. The Central Bank of India recently purchased 400 tons of gold from the International Monetary Fund, nearly the entire amount the IMF can sell each year by law. China is also expanding their gold holdings as a hedge against a declining US dollar. Gold currently makes up a tiny fraction of China’s reserves and they would have to increase their holdings by more than 700% (8,200 tons) in order to catch up with the USA. Chinese citizens are buying physical gold and silver in massive quantities since the government opened the market up in 2003. Indians, the world’s largest consumers of gold, continue to buy up massive amounts of the metal in the form of jewelry and bullion.