El Salvador Added $50M Worth of Gold, For the First Time Since 1990

SEATTLE (Scrap Monster): El Salvador, a country in Central America, declared that it had purchased gold worth $50 million. This is the nation's first gold purchase since 1990.

The nation's central bank announced on social media that it had acquired 13,999 ounces of gold. As a result, the nation currently has 58,105 ounces of gold in total, worth about $207 million. El Salvador's net international reserves as of July of this year were $4.7 billion, a substantial increase from about $3 billion in the same month last year.

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The purchase of gold occurs when the metal's price is hitting many record highs. The price of bullion has increased by about 36% so far this year.

The purchase of gold is a component of the nation's endeavours to diversify its foreign reserves. It should be mentioned that the nation has been a major Bitcoin buyer. It was also the world's first country to accept Bitcoin as legal money. The purchase of gold will assist the nation in stabilising its financial sheet amidst the volatility of Bitcoin.

The acquisition of gold by El Salvador is consistent with the global trend of central banks increasing their gold reserves. In 2025, it's anticipated that central banks around the world would buy more than 1,000 tonnes of gold. According to data from the World Gold Council (WGC), gold now makes up almost one-fifth of the reserves held by central banks worldwide.