Poland has added 100 tons of gold to its reserves through the first half of this year and plans to move at least half of its hoard from England to National Bank of Poland vaults in Warsaw.
We’ve reported extensively on gold purchases by central banks, particularly China and Russia as those countries seek to diversify reserves and decrease their exposure to the US dollar. Just this week, China announced that it added another 10.3 tons of gold to its reserves in June. While many of the countries most aggressively buying gold have contentious relationships with the US, we’re seeing a growing number of “friendly” nations increasing their reserves as well.
For the seventh straight month, China added a significant amount of gold to its official reserves.
The People’s Bank of China’s gold hoard grew another 10.3 tons in June, according to information released by the bank. Over the last seven months, the Chinese have increased their gold reserves by just over 84 tons.
Globally, central banks purchased a net 35.8 tons of gold in May. Year-to-date, reported central bank net purchases of the yellow metal total 247.3 tons. That represents a 73% increase over the same period in 2018.
China added to its official gold reserves for the sixth straight month in May as it continues efforts to minimize exposure to the dollar.
The People’s Bank of China increased its gold reserves by another 15.86 tons last month, according to data released by the bank on Monday. That raises the official Chinese gold reserves to 61.61 million ounces (1925.26 tons).
China added gold to its reserves for the fifth straight month in April and is buying gold at an accelerating pace.
According to the latest numbers released by the People’s Bank of China, the central bank added 14.9 tons of gold to its hoard in April. That raises total official Chinese gold reserves to 1909.4 tons or 61.1 million ounces.
Last November, Fed Chair Jerome Powell said interest rates were “just below the broad range of estimates of the level that would be neutral for the economy.” This was the excuse for the central bank’s monetary policy 180 and set the stage for the “Powell Pause.”
Central bankers are perpetually on a quest to find the elusive neutral interest rate, but in fact, it’s an impossible goal, as economist Frank Shostak explained in an article published on the Mises Wire.
Basically, the Fed is chasing unicorns.
Central bank gold purchases hit a level not seen since 2008 through the first two months of 2019.
Central banks added 90 tons of gold in the first two months of this year according to the latest report by the World Gold Council. This compares to 56 tons through the first two months of 2018 and ranks as the highest rate of growth since 2008.
China bought gold for the fourth straight month in March, adding another 11.2 tons of the yellow metal to its reserves, according to the latest data released by the People’s Bank of China.
With the most recent purchases, the Chinese official gold reserves stand at about 1,884 tons or 60.62 million ounces. The Chinese have been adding gold to their reserves over the last several months as they continue to minimize exposure to the US dollar.
Yesterday, the Hungarian central bank announced it recently boosted its gold reserves 10-fold.
According to its website, the National Bank of Hungary (MNB) now owns 31.5 tons of gold, up from 3.1 tons. It was the first significant purchase of gold by Hungary since 1986.
A statement by the bank said the increase in gold stocks was intended to increase financial stability and strengthen market confidence.
Keynesian central planners suffer from what Peter Schmidt calls “fatal conceit.” Paul Krugman serves as the poster child for central planning arrogance. But it’s the Federal Reserve that gives the central planners power, as Schmidt highlighted in the first article in a series highlighting this fatal conceit. Schmidt built on this theme in the second article, telling the story of Benjamin Strong and his role in blowing up the 1920s stock market. In this third installment of the series, Schmidt tackles the question no one dares to ask.