“This week, the World Gold Council published its annual survey between the central banks about its evaluation of gold reserves and future gold purchases, says CommerzBank raw material analyst Carsten Fritsch.
You can expect considerable gold purchases by central banks
“A total of 73 central banks participated in the survey, the highest number since the survey began eight years ago. The results can be summarized in a simple way. It is likely that gold reserves increase even more in the next 12 months. This is the expectation of 95% of the central banks surveyed. More than 40% of the central banks affirmed that they themselves have the intention of buying gold in the next 12 months. respective proportions were 81% and 29%. “
“Therefore, it is not surprising that 72% of central banks expect that the proportion of gold in total foreign exchange reserves increases slightly in the next five years, while 4% even expects a significant increase. The most cited reasons to maintain gold reserves are gold performance in times of crisis, portfolio diversification, gold as a reserve of value and coverage against inflation, as well as the historical position of the gold.
“The reasons mentioned above were consistently more common among the central banks of emerging economies than among the central banks of developed countries. The exception was the historical position of gold, which was mentioned more frequently by the central banks of developed countries. The survey confirmed that gold is playing an increasingly important role for central banks and that considerable purchases of gold can be expected next months. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
