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

Two More Countries Join Chase for Gold

  by    0   0

Two more countries have joined the global gold-buying spree.

According to a Bloomberg report, the Philippines’ central bank will increase gold purchases to upwards of 1 million ounces per year in the wake of a new law that exempts taxes on the monetary authority’s bullion purchases from small-scale miners. The country’s central bank has been adding between 20,000 and 30,000 ounces per year.

Meanwhile, Serbia plans to increase its gold reserves from 20 to 30 tons by the end of this year, according to an RT report.

The Serbs will reportedly continue adding gold to their holdings next year as well, boosting their hoard to 50 tons by the end of 2020 as a “safety measure.”

Serbia and the Philippines join a number of countries including China, Russia and India that are aggressively adding to their gold hoards. We’ve even seen increases in gold reserves from two EU banks – Hungary and Poland.

As the RT report notes, “Countries across the globe have been stockpiling bullion in an attempt to diversify their foreign reserves away from the US dollar.”

In total, the world’s central banks accumulated 651.5 tons of gold last year. According to the World Gold Council, 2018 ranked as the highest level of annual net central bank gold purchases since the suspension of dollar convertibility into gold in 1971, and the second highest annual total on record. That trend appears to have continued into 2019 with central banks globally adding 145 tons of gold in the first quarter of this year.

Russia has led the pack. The central bank purchased another 15.55 tons of the yellow metal in April. Russia has expanded its gold holdings by 71.53 tons through the first four months of 2019. This continues a multi-year trend. Russian gold reserves increased 274.3 tons in 2018, marking the fourth consecutive year of plus-200 ton growth.

Meanwhile, the Russians sold off nearly all of its US Treasury holdings. According to Bank of America analysts, the amount of US dollars in Russian reserves fell from 46% to 22% in 2018.

The Russians are also considering creating a gold-backed cryptocurrency to build an alternative international payment system as the country continues to seek a path toward de-dollarization.

China has been another big buyer. The People’s Bank of China added gold to their reserves for the fifth straight month in April and they are buying gold at an accelerating pace.

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

Get Peter Schiff’s most important Gold headlines once per 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

ETFs Charted Record Gold Inflows in 2020; Holdings Hit All-Time High

Gold-backed ETFs recorded record net gold inflows, pushing holdings globally to record levels in 2020. On net, ETFs globally added 877 tons of gold last year worth about $47.9 billion. Gold holdings rose by over one-third, ending the year at a record 3,752 tons, according to data released by the World Gold Council.

READ MORE →

US Government Runs Biggest December Deficit in History

The US government ran the biggest December budget deficit in history last month. The December budget shortfall came in at $143.6 billion. That compares with a $13.3 billion deficit in December 2019, according to the Monthly Treasury Statement.

READ MORE →

Demand for Silver in Automobile Production Expected to Rise

Last month we reported that the surge in solar energy use could power a strong demand for silver. Now analysts say demand from another sector could also benefit the white metal. A report by the Silver Institute projects that the automotive industry will absorb nearly 90 million ounces of silver annually by 2025. That would […]

READ MORE →

Six Central Banks Increased Gold Reserves in November

Six central banks added gold to their reserves in November. Purchases totaled 16.8 tons, consistent with the level of purchases in both August and September. On net, central banks were sellers globally in November, thanks to a large decrease in reserves by the Turkish central bank, according to the latest data reported by the World […]

READ MORE →

Russia Holds More Gold Than Dollars for First Time in History

For the first time ever, Russia holds more gold than US dollars. According to a Central Bank of Russia report published this week and analyzed by Bloomberg, gold made up 23% of the Central Bank of Russia’s reserves as of the end of June. The bank’s share of dollar assets dropped to 22%. In 2018, […]

READ MORE →

Comments are closed.

Call Now