Post by account_disabled on Mar 9, 2024 2:08:49 GMT -5
Central banks continue to accumulate gold according to the latest available data published by the World Gold Council. In October, central banks added another 31 net tons of gold to their reserves. This figure brings official world gold reserves to their highest level since November 1974 with a total of 36,782 tons.
The Central Bank of the Ecuador Mobile Number List United Arab Emirates was the largest buyer in October, adding just over 9 Tn to its gold reserves. This brings annual net purchases to 18 Tn and raises total gold reserves to almost 74 Tn representing 3% of total reserves.
On the other hand, the Central Bank of Turkey, the largest buyer of gold to date, bought another 9 Tn of gold in October. Its net purchases to date now stand at 103 Tn, the highest level of purchases since 2019 (126 Tn), with gold reserves of 498 Tn (27% of total reserves).
Also worth highlighting is the position of the Central Bank of the Republic of Uzbekistan, which purchased another 9 tons of gold during the month, the same volume of gold for the fifth consecutive month and which raises annual purchases to 37 tons and its total reserves to 399 tons. Tn. Also in the same region, the National Bank of Kazakhstan added 3 Tn to its official gold reserves in October, making its total official gold reserves 384 Tn.
Another case to highlight is that of Qatar, whose Central Bank added 31 Tn in the last year, (only 1 Tn in the last month) making a total of 88 Tn in its gold reserves. The Bank of India also increased its reserves by 1 Tn in October, taking its reserves to 786 Tn.
Central banks are acquiring gold at the fastest pace since 1967, and analysts point to China and Russia as instigators of this trend as they seek to diversify their foreign exchange reserves beyond the dollar and even want to implement a financial system parallel to the Anglo-Saxon one.
Data compiled by the World Gold Council (WGC) shows that demand for the precious metal has exceeded any annual amount in the last 55 years. Last month's estimates are also much higher than official figures reported by central banks, leading to speculation in the industry about the identity of the buyers and their motivations.
The flight of central banks to gold suggests that the geopolitical context is one of distrust, doubt and uncertainty after the United States and its allies froze Russia's reserves of dollars, euros and other currencies.
This buying level was last seen marking a historic turning point for the global monetary system. In 1967, European central banks purchased massive volumes of gold from the US, causing an explosion in price and the collapse of the London Gold Pool's reserves, accelerating the eventual demise of the Bretton Woods System that It tied the value of the US dollar to the precious metal.
Last month, WCG estimated that institutional purchases reached 673 tons in year-on-year figures and that in the third quarter alone central banks purchased almost 400 tons, the highest volume since records began in 2000.
The WGC's conservative estimates exceed the purchases reported to the International Monetary Fund (IMF) and by central banks, which amount to 333 Tn between January and September.
Officially, Turkey led purchases in the third quarter with 31 Tn, bringing gold to around 29% of its total reserves. Uzbekistan followed with 26 tons, while Qatar in July made its largest monthly acquisition recorded since 1967.
The discrepancy between the WGC estimates and the IMF's officially reported figures can be explained in part by government agencies, in addition to the central banks of Russia, China and others, being able to buy and hold gold without declaring them as reserves.
For example, the People's Bank of China (PBoC) reported earlier this month that in November it made its first increase in gold reserves since 2019, with an increase of 32 Tn worth about 1.8 billion. However, analysts believe that purchases are higher. In fact, Barrick Gold Corp., the world's second largest gold miner, believes China has bought 200 tons this year.
The Central Bank of Russia (CBR) stopped reporting monthly figures on its reserves shortly after the war began, but given that the country has seen the West freeze $300 billion in reserves, chances are that if it is not hoarding dollars or euros are instead accumulating gold.
In February 2022, the last time CBR published its statistical data, gold accounted for 20.9%.
The Central Bank of the Ecuador Mobile Number List United Arab Emirates was the largest buyer in October, adding just over 9 Tn to its gold reserves. This brings annual net purchases to 18 Tn and raises total gold reserves to almost 74 Tn representing 3% of total reserves.
On the other hand, the Central Bank of Turkey, the largest buyer of gold to date, bought another 9 Tn of gold in October. Its net purchases to date now stand at 103 Tn, the highest level of purchases since 2019 (126 Tn), with gold reserves of 498 Tn (27% of total reserves).
Also worth highlighting is the position of the Central Bank of the Republic of Uzbekistan, which purchased another 9 tons of gold during the month, the same volume of gold for the fifth consecutive month and which raises annual purchases to 37 tons and its total reserves to 399 tons. Tn. Also in the same region, the National Bank of Kazakhstan added 3 Tn to its official gold reserves in October, making its total official gold reserves 384 Tn.
Another case to highlight is that of Qatar, whose Central Bank added 31 Tn in the last year, (only 1 Tn in the last month) making a total of 88 Tn in its gold reserves. The Bank of India also increased its reserves by 1 Tn in October, taking its reserves to 786 Tn.
Central banks are acquiring gold at the fastest pace since 1967, and analysts point to China and Russia as instigators of this trend as they seek to diversify their foreign exchange reserves beyond the dollar and even want to implement a financial system parallel to the Anglo-Saxon one.
Data compiled by the World Gold Council (WGC) shows that demand for the precious metal has exceeded any annual amount in the last 55 years. Last month's estimates are also much higher than official figures reported by central banks, leading to speculation in the industry about the identity of the buyers and their motivations.
The flight of central banks to gold suggests that the geopolitical context is one of distrust, doubt and uncertainty after the United States and its allies froze Russia's reserves of dollars, euros and other currencies.
This buying level was last seen marking a historic turning point for the global monetary system. In 1967, European central banks purchased massive volumes of gold from the US, causing an explosion in price and the collapse of the London Gold Pool's reserves, accelerating the eventual demise of the Bretton Woods System that It tied the value of the US dollar to the precious metal.
Last month, WCG estimated that institutional purchases reached 673 tons in year-on-year figures and that in the third quarter alone central banks purchased almost 400 tons, the highest volume since records began in 2000.
The WGC's conservative estimates exceed the purchases reported to the International Monetary Fund (IMF) and by central banks, which amount to 333 Tn between January and September.
Officially, Turkey led purchases in the third quarter with 31 Tn, bringing gold to around 29% of its total reserves. Uzbekistan followed with 26 tons, while Qatar in July made its largest monthly acquisition recorded since 1967.
The discrepancy between the WGC estimates and the IMF's officially reported figures can be explained in part by government agencies, in addition to the central banks of Russia, China and others, being able to buy and hold gold without declaring them as reserves.
For example, the People's Bank of China (PBoC) reported earlier this month that in November it made its first increase in gold reserves since 2019, with an increase of 32 Tn worth about 1.8 billion. However, analysts believe that purchases are higher. In fact, Barrick Gold Corp., the world's second largest gold miner, believes China has bought 200 tons this year.
The Central Bank of Russia (CBR) stopped reporting monthly figures on its reserves shortly after the war began, but given that the country has seen the West freeze $300 billion in reserves, chances are that if it is not hoarding dollars or euros are instead accumulating gold.
In February 2022, the last time CBR published its statistical data, gold accounted for 20.9%.