The Strategist

WGC: Central banks around the world are stocking up gold


07/30/2021 - 10:04



Central banks from around the world have been actively byuing gold in the second quarter of 2021, adding to their foreign exchange reserves, according to a report by the World Gold Council (WGC) published on its website.



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The organization reports that the main buyers of gold in the April-June were central banks of developing countries, including Thailand (bought 90.2 tons), Hungary (62 tons), Brazil (53.7 tons), India (29 tons) and Uzbekistan (25.5 tons).

The main motives were the desire to hedge against rising inflation (especially in the context of low interest rates on the national debt of most countries), as well as diversification of their own international reserves.

In contrast, some central banks sold off their gold reserves, but to a much smaller extent. The Russian Central Bank sold 3.1 tonnes of metal, Germany's Bundsbank sold 3.3 tonnes, and Kazakhstan's bank sold 9.9 tonnes.

According to the WGC, not only demand increased in the second quarter, but also gold supply, up 13 per cent to 1,172 tonnes. This was mainly due to an increase in production.

source: gold.org




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