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Vulcan
Gold April 09, 2019 08:30:56 AM

Central Bank Gold Reserves Heightened in February

Paul Ploumis
ScrapMonster Author
The gold holdings have recorded a growth of 90t during the first two months of 2019.
Central Bank Gold Reserves Heightened in February

SEATTLE (Scrap Monster): The World Gold Council (WGC) has reported strong start to central bank buying activity for gold in 2019. The central bank statistics for the month of February this year indicates that gold reserves at global central banks grew by 51 tonnes (t) during the month. This is the second largest increase in a month since October last year, when central banks across the globe added 105t to their total gold holdings. Meantime, the monthly gold sales remained negligible at 0.2t during the month.

According to WGC, the net gold buying activity continued to remain robust during the initial two-month period of the year. The gold holdings have recorded a growth of 90t during the first two months of 2019, significantly higher when compared with the 56t added during Jan-Feb ’18. Incidentally, this is the highest level of growth in more than a decade. The growth is mainly on account of increased purchases by central banks from the emerging markets.

A recent survey conducted by WGC authorities had found that diversification continues to remain as the key motivator for central bank gold purchases. The ongoing geopolitical and economic uncertainty across the globe has bolstered gold purchases. Nearly 76% of the world’s central banks consider gold as a safe-haven asset, while 59% regard the yellow metal as an effective portfolio diversifier. The survey had revealed that almost 20% of the world central banks intend to boost gold purchases during 2019.

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