Gold-buying by central banks has slowed from the record pace we saw in 2018 and 2019, but many countries continue to load up on the yellow metal.
August saw the first net global decline in central bank gold holdings, but the number was skewed by a big sale by one central bank. Overall, seven countries increased their gold reserves by a ton or more in August, tying February for the highest number of buyers in a single month this year.
Global de-dollarization resumed in the second quarter according to data recently released by the International Monetary Fund (IMF).
While the dollar share of global reserves increased in the first quarter of 2020, it fell sharply in Q2, resuming a more than two-year trend downward.
Central bank gold-buying is expected to ramp up again in 2021 with Russia and China possibly entering back into the market.
Citigroup and HSBC Securities both expect an increase in central bank gold purchases next year after a drop-off in 2020.
Central banks bought over 27 tons of gold in July, but big sales by two banks dropped net global purchases to 8.8 tons, according to the latest data by the World Gold Council.
Central banks added another net 18.1 tons of gold to their reserves in June, according to the latest data from the World Gold Council. The net total was pulled down by a significant sell-off by Columbia’s central bank.
Central banks added a net of 39.8 tons of gold in May, according to the latest data from the World Gold Council. May purchases maintained the pace we’ve seen through the first four months of the year and were slightly above the four-month average of 35 tons.
The pace has slowed somewhat this year, but central banks are still buying gold, and the World Gold Council expects central bank demand to continue over the next 12 months.
In April, central banks globally added another net 31.6 tons of gold to their reserves, despite Russia following through on its commitment to suspend its buying program.
The Federal Reserve launched QE infinity this week. The Fed has committed to buy an “unlimited” amount of US Treasuries and mortgage-backed securities. But that’s not all. The central bank also announced it will buy some corporate bonds for the first time ever.
A bill introduced in the Wyoming House would establish a precious metals bullion depository in the state. It would not only create a safe place to store precious metals; it could also facilitate the everyday use of gold and silver in financial transactions in Wyoming and set the stage to undermine the Federal Reserve’s monopoly on money.