{"id":9250,"date":"2021-06-14T18:16:05","date_gmt":"2021-06-14T12:46:05","guid":{"rendered":"https:\/\/gjepc.org\/solitaire\/?p=9250"},"modified":"2021-06-14T19:28:39","modified_gmt":"2021-06-14T13:58:39","slug":"central-bank-gold-buying-gathers-steam","status":"publish","type":"post","link":"https:\/\/gjepc.org\/solitaire\/central-bank-gold-buying-gathers-steam\/","title":{"rendered":"Central bank gold buying gathers steam"},"content":{"rendered":"\n<p>As&nbsp;<a href=\"https:\/\/www.gold.org\/goldhub\/gold-focus\/2021\/06\/how-central-bank-demand-faring-against-our-expectations\" target=\"_blank\" rel=\"noreferrer noopener\">Krishan Gopaul\u2019s blog post last week<\/a>&nbsp;pointed out, central banks have been buying gold during the first four months of 2021. Over that period, we estimate that the official sector has added 150-200 tonnes of gold. A significant portion of this buying has come from the central banks of Hungary and Thailand, who added 63 tonnes in March and 43.5 tonnes in April, respectively. In fact, these two purchases are the second and third largest monthly central bank gold purchases in recent history, eclipsed only by Poland\u2019s 100 tonne purchase in June 2019 (see chart below).<\/p>\n\n\n\n<p>Thailand\u2019s gold purchases appear to be continuing in May as well. The Bank of Thailand publishes&nbsp;<a href=\"https:\/\/www.bot.or.th\/English\/Statistics\/EconomicAndFinancial\/Pages\/StatInternationalReserves.aspx\" target=\"_blank\" rel=\"noreferrer noopener\">weekly reserve position data on gold<\/a>, although reported in US dollar terms and not tonnage. Between 30 April and 28 May 2021, the value of the Bank of Thailand\u2019s gold reserves grew from US$11.2 billion to US$14.9 billion, an increase of US$3.7 billion. A back-of-the-envelope calculation shows that this growth may imply a 40-50 tonne increase. We will have to await the May update from the IMF to see what the exact change in Thailand\u2019s gold reserves is.<\/p>\n\n\n\n<p>The Bank of Zambia has also started to accumulate gold in recent months, albeit on a smaller scale than the aforementioned central banks. Since February 2021, it has added 2,100 ounces per month to its reserves. Zambia has already reported its May gold holdings to the IMF, which now total 8,400 ounces or 0.26 tonnes. These purchases are likely the result of the central bank\u2019s&nbsp;<a href=\"https:\/\/www.reuters.com\/article\/zambia-economy-idUSL1N2IR0JL\" target=\"_blank\" rel=\"noreferrer noopener\">decision to build its gold reserves from domestic production<\/a>. Zambia now joins the central banks of Mongolia, the Philippines, and several other countries in sourcing gold reserves from domestic mine supply.<\/p>\n\n\n\n<p>Hungary issued a&nbsp;<a href=\"https:\/\/www.mnb.hu\/en\/pressroom\/press-releases\/press-releases-2021\/magyar-nemzeti-bank-triples-hungary-s-gold-reserves-to-94-5-tons\" target=\"_blank\" rel=\"noreferrer noopener\">press release<\/a>&nbsp;that accompanied its March purchase which cited \u201cnew risks arising from the coronavirus pandemic\u201d as playing a key role in its decision to buy. Bank of Zambia Governor Christopher Mvunga said that \u201c<em>during periods of market stress \u2013 when assets would be losing value \u2013 gold would be adding value, thereby shielding the whole portfolio from large losses<\/em>.\u201d Our&nbsp;<a href=\"https:\/\/www.gold.org\/goldhub\/data\/2021-central-bank-gold-reserve-survey\" target=\"_blank\" rel=\"noreferrer noopener\">2021 Central Bank Gold Reserves survey<\/a>&nbsp;found that gold\u2019s performance during crisis periods is now the most relevant factor for central banks to hold gold, echoing the sentiments above. As uncertainty over the post-pandemic recovery hangs over global markets, it will undoubtedly continue to drive central bank investment decisions over the coming year.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Largest Monthly Central Bank Gold Purchases (Jan 2012 to present)<\/h4>\n\n\n\n<p><strong>This\u00a0<a href=\"https:\/\/www.gold.org\/goldhub\/gold-focus\/2021\/06\/central-bank-gold-buying-gathers-steam?utm_medium=email&amp;utm_source=newsletter&amp;utm_campaign=GOLDHUB%3A+your+weekly+gold+market+round-up\">article<\/a>\u00a0is republished with permission from World Gold Council<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As&nbsp;Krishan Gopaul\u2019s blog post last week&nbsp;pointed out, central banks have been buying gold during the first four months of 2021. Over that period, we estimate that the official sector has added 150-200 tonnes of gold. A significant portion of this buying has come from the central banks of Hungary and Thailand, who added 63 tonnes&hellip;<\/p>\n","protected":false},"author":1,"featured_media":9251,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80,100],"tags":[],"thb-sponsors":[],"class_list":["post-9250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gold","category-in-focus"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Central bank gold buying gathers steam - Solitaire magazine is a International jewellery magazine - India\u2019s leading B2B gem and jewellery magazine<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gjepc.org\/solitaire\/central-bank-gold-buying-gathers-steam\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Central bank gold buying gathers steam - Solitaire magazine is a International jewellery magazine - India\u2019s leading B2B gem and jewellery magazine\" \/>\n<meta property=\"og:description\" content=\"As&nbsp;Krishan Gopaul\u2019s blog post last week&nbsp;pointed out, central banks have been buying gold during the first four months of 2021. 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