Central Banks’ Gold-Buying Spree: Implications For The Global Economy And Investors

Central Banks’ Gold-Buying Spree: Implications For The Global Economy And Investors

3D rendering of a bank Vault with gold bars inside Central banks accumulated gold at the fastest pace on record in the first two months of 2023, according to a report by the World Gold Council's (WGC) Krishan Gopaul. In January and February, central banks collectively bought a net 125 tonnes of the metal, the highest amount for the year-to-date period since banks became net buyers in 2010. Central bank demand has had the strongest start to a year since at least 2010 The countries reporting the largest purchases in the first two months were Singapore (51. 4 tonnes), Turkey (45. 5 tonnes), China (39. 8 tonnes), Russia (31. 1 tonnes) and India (2. 8 tonnes). The Central Bank of Russia published an update on its gold reserves for the first time in about a year, so the 31. 1 tonnes were likely accumulated over the course of several months instead of in January and February. Meanwhile, very few countries' central banks shrank their gold reserves. Net sellers were Kazakhstan, Uzbekistan, Croatia and the United Arab Emirates (UAE), though year-to-date purchases far outweighed sales. If you look back at the list of net buyers, you'll notice that three are members