Central banks around the world seem to be preparing for something as they have been purchasing gold reserves at a rapid rate.
How fast are we talking about here? Apparently, at a pace not seen since 55 years ago, Oil Price reports. Per World Gold Council (WGC), central banks bought a whopping 399 tonnes of gold valued at about $20 billion during the third quarter of 2022. International demand for the highly sought out metal has now returned to pre-pandemic levels, according to the global head of research at the World Gold Council Juan Carlos Artigas.
“Gold continues to prove itself as a global market,” he said. “You can’t use just one label to define the gold market. Gold’s diverse source of demand is why it should have a strategic place in an investor’s portfolio.”
Many of these purchases are now being made more confidently as many restrictions of the Covid-19 pandemic have begun to wane, according to Louise Street of the World Gold Council.
Among the biggest buyers identified by the WGC were the central banks of Turkey, Uzbekistan, Qatar, and India. It is important to note that numerous other central banks likely have bought a substantial amount of gold but have not released their purchases to the public.
Turkey seized the top category in recorded gold purchases this year, with their central bank reporting acquisitions amounting to 31 tonnes in Q3 for a total of 489 tonnes.
Purchases of gold bars in Turkey’s retail sector additionally exploded, skyrocketing over 300% year-over-year.
Uzbekistan, Qatar, and India bought 26 tonnes, 15 tonnes, and 17 tonnes respectively during the same quarter.
“Part of the reason why gold has held up well this year is because there is still demand in the marketplace,” explained Artigas. “Our research shows that gold remains on solid footing.”
The amount of gold being purchased now has not been seen since 1967, according to the Katusa Research social media account.
Central banks bought up RECORD amounts of gold in Q3 (to the tune of 400 tons). 🚨
And it's the most gold purchased YTD since 1967 (back when the dollar was backed by gold). pic.twitter.com/ujgqh4CmAD
— Katusa Research (@KatusaResearch) November 1, 2022