Central Banks Continue to Stockpile Gold

Central banks around the world continue to buy gold in a purchasing binge that has become the second largest of the last fifty years.  Last year, central banks purchased a combined 477 tons of gold, according to the World Gold Council. This accounted for a whopping 17% increase from 2013. The total amount of gold bought in 2014 represented the second largest amount of global gold purchases from central banks in the last fifty years.

Russia was the largest purchaser of gold in 2014, adding 173 tons to its national reserves.  The country now holds over 1200 tons of gold ranking #6 overall in total gold reserves. The top 10 rankings of gold reserves as of February 2015 are:

  1. USA – 8134 tons
  2. Germany – 3384 tons
  3. IMF – 2814 tons
  4. Italy – 2455 tons
  5. France – 2435 tons
  6. Russia – 1208 tons
  7. China – 1054 tons
  8. Switzerland – 1040 tons
  9. Japan – 765 tons
  10. Netherlands – 612 tons
Central Banks Continue to Stockpile Gold

Central banks have been on a gold purchasing binge since 2010, a marked reverse from the previous twenty year span in which they were almost exclusively net sellers of gold. The sea change in gold purchasing from central banks is most likely a result of a flight to safety as Europe and Asia are experiencing a period of economic crisis and uncertainty in the midst of deflationary environments. That, combined with the increased buying pressure from emerging market central banks, has led to a gold rush from international central banks that should propel gold upward for years to come.

One question continues to run through my head:  If banks are buying gold, shouldn’t I do the same?  For those with smaller budgets, silver accomplishes the same as gold, but at much lower prices.  If you are interested in adding precious metals to your investments or converting your savings to precious metals, please contact us – 800-707-7923.

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2016-10-31T12:19:54-04:00By |Categories: Gold News, Invest in Gold, Invest in Silver|

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President and CEO of National Coin Broker
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