Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Ireland Buys More Gold as Inflation Pressures Mount

  by    0   1

Ireland has added more gold to its reserves as inflation worries mount.

According to the latest data, the Central Bank of Ireland purchased $88 million ($78 million euros) in gold in November, adding to the two tons it added to its holdings in previous months. With the latest purchases, the Irish central bank has boosted its gold reserves by over three tons in a three-month period.

Up until late last year, Ireland had not purchased any gold since 2009. With its gold-buying in recent months, the Irish central bank has boosted gold reserves by 60%.

Bank of Ireland officials would not comment on its newfound interest in gold, saying only that “the central bank’s transactions in gold are commercially sensitive and it cannot disclose details of its asset management strategy beyond the information set out in the Annual Report.”

But many speculate the Irish central bank is hedging against inflation. Ireland’s annual inflation rate came in at 5.3% in November, up from 5.1% in October. That’s the highest Irish inflation rate since 2007.

While the price of gold has faced stiff headwinds in dollar terms, in November, the gold price in euros was at the highest level in over a year.

Bank of Ireland Governor Gabriel Makhlouf has expressed worries about rising inflation.

I am very, very conscious that inflation today is impacting on households across the country. It’s not so much a question of how long will this go on before I start to worry. It’s more that if I see evidence that the blockages are not being fixed, or that different things aren’t happening, then I will start to worry. But I am worried today.”

Ireland is one of several central banks that have entered the gold market in recent months.

The Monetary Authority of Singapore (MAS) bought 26.3 tons of gold in May and June 2021, according to its most recent International Reserves and Foreign Currency Liquidity report. It was the first expansion of the country’s gold reserves since the year 2000.

Thailand and Brazil made big gold purchases earlier in the year. The Philippines and Mongolia bought smaller amounts. These new faces join a list of countries that have been consistently buying gold, including Kazakhstan, India, Turkey (despite some recent sales), and Uzbekistan.

Poland also recently announced it would further expand its gold reserves by 100 tons in 2022. Bank of Poland President Adam Glapiński said holding gold is a matter of financial security and stability.

Gold will retain its value even when someone cuts off the power to the global financial system, destroying traditional assets based on electronic accounting records. Of course, we do not assume that this will happen. But as the saying goes – forewarned is always insured. And the central bank is required to be prepared for even the most unfavorable circumstances. That is why we see a special place for gold in our foreign exchange management process.”

Net gold buying by central banks globally reached 393 tons at the end of Q3. Central banks have already bought more gold this year than they did in the entirety of 2020 (255 tons) with one quarter left to go. The World Gold Council says net gold purchases are “poised to reach a significant total in 2021.”

Download SchiffGold's Gold vs GLD EFT's Free Guide

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

GDP Creates the Illusion of Fed-Fueled Economic Growth

Joe Biden keeps touting the “booming” economic recovery. And of course, he’s taking credit for it. But is the economy really booming? If you look at GDP growth, it certainly appears the US economy is in the midst of a robust recovery. But economic growth is relative. And when your baseline is an economy that […]

READ MORE →

Peter Schiff: The REAL Reason Gold Hasn’t Gone Up and Why It Ultimately Will

Inflation in the US is at historically high levels. So, why hasn’t gold taken off? We hear this question over and over again. In this video, Peter Schiff answers this question and explains why the markets will eventually wake up to their misperception.

READ MORE →

What Happens If the Fed Takes Its Thumb Off the Housing Market?

We talk a lot about how the Fed keeps its big fat thumb on the Treasury market. But it also has its big fat thumb on the housing market. And if the Fed really does follow through with its taper and its plans to shrink its balance sheet, it will have a big effect on […]

READ MORE →

Consumer Debt Charts Biggest Gain in 20 Years

The Federal Reserve is talking about raising interest rates. Well, that’s going to be a big problem for American consumers who are running up debt at a torrid pace. This is yet another reason why the Fed can’t do what it’s claiming it will do. Consumer debt jumped 11% year-on-year in November, according to the […]

READ MORE →

The Fed Released Its December FOMC Minutes; I Have Questions!

The Federal Reserve released the minutes from the December FOMC meeting on Thursday (Jan. 5) and the markets freaked once again at the prospect of monetary tightening. The minutes seem to indicate an even more abrupt shift to tighter monetary policy to fight inflation. But I have questions.

READ MORE →

Comments are closed.

Call Now