Infotech

Central banks are once again fond of gold



Posted on Sep 1, 2021 at 7:59 amUpdated Sep 1, 2021, 10:35 a.m.

Back to normal. After selling gold to support their respective economies during the pandemic, central banks are once again net buyers of the precious metal. In the second quarter, their gold reserves swelled by nearly 200 tonnes, according to data from the World Gold Council (CMO). This brings net purchases over the first six months of the year to 333.2 tonnes, or 29% more than the ten-year average. Since the 2008 financial crisis, institutions have been buying metal on a massive scale.

It is the institutions of emerging countries which, for the most part, are in the process. Thailand bought 90.2 tonnes of gold, bringing its total reserves to 244.2 tonnes. Hungary increased its stock of precious metal by 63 tonnes, tripling its reserves to 94.5 tonnes. Brazil’s central bank acquired 53.7 tonnes of gold. The pandemic, the ever higher level of debt and inflation are the main reasons for this shopping.

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