Global Central Banks purchase Gold at large; Gold reserves highest level

Tokyo / Washington – The world’s central banks have increased gold purchases in the face of declining dollar value in the global economy, rising inflation and the corona crisis. This year, various central banks worldwide added more than 400 tonnes of gold to their reserves. These include Thailand, Brazil, India, Singapore, Uzbekistan and Hungary. Thailand’s central bank has bought 90 tonnes of gold this year. Gold reserves at central banks have reached 36,000 tonnes, a new record since 1990.

According to the International Monetary Fund and the World Gold Council, the buying trend in gold seems to be on the rise. Depreciating USD in the global economy, increasing inflation and the Coronavirus crisis have been the main reasons for this trend. ‘Gold is an important factor in safeguarding investment and using it as collateral in the face of new threats to the global economy and rising inflation,’ said the head of Hungary’s central bank. Hungary has bought 63 tonnes of gold this year.

Thailand’s central bank has bought 90 tonnes of gold this year, with India adding 71 tonnes to its gold reserves. Brazil bought 60 tonnes, Uzbekistan more than 50 tonnes and Singapore added 26 tonnes to their gold reserves. Countries like Kazakhstan, Russia, Ireland, Poland have also increased their gold reserves. Poland has announced an addition of 100 tonnes of gold to its reserves over the next few years. Whereas Ireland announced an addition to its gold reserve for the first time since 2009. Russia reported that it purchased 6 tonnes of gold in the last year.

Over the past decade, various central banks worldwide have added up to 4,500 tonnes of gold reserves. It has been revealed that the recession of 2008-09 has accelerated the process of increasing gold reserves. Uncertainty over the US dollar has grown over the past few years, with its use from China, Russia and European countries declining. Against this backdrop, confidence in gold is growing and increased buying by central banks is supporting it.