Global gold reserves rose by 33 tonnes in April, according to the World Gold Council. The Central Bank of Turkey was at the forefront, increasing its holdings by 8 tonnes. This addition marks 11 consecutive months of purchases, bringing the central bank’s year-to-date acquisitions to 38 tonnes and raising its overall official gold reserves to […]
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India Repatriates 100 Tonnes of Gold From UK, Aims to Move More
According to local media reports, the Reserve Bank of India has repatriated 100 tonnes of gold that was held in the vaults of the Bank of England. The operation, carried out in special circumstances due to the quantity of gold moved, may be repeated as India seeks to hold more gold domestically for logistical reasons […]
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Report: China Could Be Hoarding Over 5,300 Tonnes of Gold, Might Create Price ‘Perfect Storm’
A recent report from Jan Nieuwenhuijs, an expert in the Chinese gold market, has found that the actual gold reserves held by the People’s Bank of China might comprise over 5,300 tonnes, dwarfing official numbers. Nieuwenhuijs explains China might be a driving force behind increasing gold prices, as the country moves to hoarding gold to […]
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Gold Rush Continues – Central Banks Purchased 44 Tonnes in November
Krishan Gopaul, senior analyst of the World Gold Council, revealed that central banks kept adding gold to their reserves during November. According to public records and reports from the International Monetary Fund (IMF), central banks added 44t of gold to their coffers, with the Central Bank of Turkey leading the charge by purchasing 25 tonnes.
Central Banks Kept Buying Gold in November
Central banks continued their gold rush during November. According to a report by Krishan Gopaul, an analyst for Europe, Middle East, and Africa (EMEA) of the World Gold Council, central banks continued to add to their gold reserves in November, purchasing a net of 44t of gold.
Gopaul stated that these numbers came from public records and International Monetary Fund reports, reiterating the momentum of gold as a reserve asset, particularly for emerging markets in Asia and Europe. Developed nations have remained relatively quiet in the sales and purchase sides of the equation.
The largest gold purchasers of the month were the Central Bank of Turkey, which purchased 25t of gold, and the National Bank of Poland, which added 19t to its coffers.
The People’s Bank of China, which purchased 12t of gold, ranked third. However, China is the country that purchased the most gold during 2023, adding more than 200 tonnes of gold.
According to Steve Hanke, economist and professor of applied economics at Johns Hopkins University, the accumulation of central banks from countries in developing nations and the large purchases of countries like China have to do with the uncertainty surrounding the field of fiat currencies.
In November, Hanke explained that the rise of gold as a reserve asset was linked to the increasing use of the U.S. dollar as a weapon and the application of sanctions that have moved countries to what he called “de-dollarization mode.”
Nonetheless, the World Gold Council predicted that gold would have a flat performance in a soft landing scenario.
What do you think about the continued gold purchases of emerging nations? Tell us in the comments section below.
Central Bank’s Gold Purchases Make ‘Record Breaking Start’ in Q1 2023; 228.4 Tonnes Added to World Reserves
Central banks have continued to consistently purchase gold during the first quarter of 2023, according to the latest report of the World Gold Council (WGC), the global gold statistics organization. Central banks added nearly 230 tonnes of gold to their national reserves, representing a 176% rise compared to the purchases made in Q1 2022.
World Gold Council Registers Strong Gold Demand From Central Banks
Central banks have registered a strong demand for gold during the first quarter of the year, according to the latest report of the World Gold Council (WGC), which keeps global statistics on gold production and demand. According to its Gold Demand Trends report, central banks kept buying gold consistently, adding nearly 230 tonnes during Q1 2023. This represents a rise of 176% over what these institutions purchased in Q1 2022, signaling strong demand.
However, when compared to the numbers from the last quarter, central banks and other institutions reduced their demand significantly, with these institutions purchasing 150.2 tonnes of gold less.
Although the WGC states that limited information and delayed reporting make it very difficult to really predict if gold demand will rise or subside this year, it remains positive in its outcome stating that “intentions have consistently been a leading indicator for buying over the last few years and our central bank surveys suggest little change to the positive trend.”
Singapore and China Led Purchases
Four institutions concentrated most of the gold purchases during the quarter, according to the WGC report. The Monetary Authority of Singapore reported a rise of 69 tonnes, with its reserves reaching 222 tonnes, registering an increase of 45% quarter over quarter. The second place goes to China, with the People’s Bank of China (PBOC) registering purchases for 120 tonnes. With these additions, China’s gold reserve reached 2,068 tonnes.
China has been consistently buying gold since November, adding 102 tons to its reserves during a period of five months. In March, the PBOC reported purchases of 18 tons. Turkey was another of the countries that purchased the most gold during Q1, adding 45 tonnes but also selling 15 to its internal market after a temporary gold import ban, leaving its reserves at 572 tonnes, representing more than 30% of its central bank reserves. India also purchased 7 tonnes of gold during Q1, registering a national gold reserve of 795 tonnes.
What do you think about the latest report of the World Gold Council on gold demand and how central banks keep purchasing gold for their reserves? Tell us in the comment section below.
Over 3,000 Tonnes of Gold to Shock the Market; Still 21 Million Bitcoin Though
It’s often argued that Bitcoin is superior to gold in multiple ways. It’s more divisible, easier to transport and store, and programmable.
Bitcoin is also scarcer than gold too. In fact, as the the former asset’s issuance rate is on the cusp of a dramatic cut, the latter’s is prone to massive inflation at any given moment.
Just How Scarce is Gold?
According to a report in News18, a recent geological survey has uncovered more than 3,000 tonnes of gold in India. The government of the state of Uttar Pradesh is looking to auction the gold off before it’s even out of the ground.
The Geological Survey of India and Uttar Pradesh Directorate of Geology and Mining reported that reserves of metal have been confirmed in Hardi village in the region of Kone, and Son Pahahi in Mahuli. The survey located almost 650 tonnes of gold at the former location and over 2,943 tonnes at the latter.
India strikes Gold!
Huge 3,500-tonne gold deposits found in the state of Uttar Pradesh. That's three times the current Gold Reserves of India – The @FinancialXpress https://t.co/G07D5g1hp7
— Tarek Fatah (@TarekFatah) February 21, 2020
According to a report by the World Gold Council, around 190,000 tonnes of gold have been mined globally to date. The recent discovery in India, therefore represents an instant two percent increase on total circulating supply of the asset. Or, it will as soon as miners haul it out of the ground.
Bitcoin: A Sounder Money than Gold?
The discovery highlights the fallibility of gold and the superiority of Bitcoin in terms of an investment asset. Bitcoin, as well as being cheap to divide, store, and transport, is actually much scarcer than gold too.
Satoshi Nakamoto, whoever he, she, they, or it was, designed an elaborate security model and incentive structure to ensure that there would only be 21 million Bitcoin. Gold, on the other hand, is comparatively abundant in the universe.
There is a huge amount of gold many miles beneath every one of our feet. According to an ABC Science article, there is enough gold at the core of the earth to cover the planet entirely with a half metre layer.
That doesn’t consider gold that’s certainly out there in the universe. As NewsBTC recently previously reported, NASA detected a massive asteroid containing around quadrillion worth of gold last year. The space agency also says it is going after the loot in 2022.
Gold’s value proposition might have looked rock solid 5,000, 500, or even 100 years ago. However, with technological advancements allowing for increasingly accurate geological surveying and the capabilities of space travel allowing trips to distant asteroids to bring home the riches of the cosmos, it starts to look a lot shakier.
That’s okay too. Money is a technology after all and technology is ever changing. Whilst history makes it clear that a hard money, like gold or Bitcoin, is important, there is nothing to say that a technology closer to a perfect monetary asset cannot disrupt what has served well before it.
Related Reading: Could Crypto Exchange Coinbase Be Pumping Tezos To The Moon?
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