SEATTLE (Scrap Monster): The recently published report by the World Gold Council (WGC) states that there has been a visible change in the attitude to gold by world central banks. The report outlines recent trends in gold reserves.
The global financial crisis of 2008 exposed vulnerabilities in the global financial system, which led to a change in attitude towards gold. The report notes that central banks have been net purchasers of gold since 2010. Since then the banks have added around 5,562.40 tonnes of gold to their reserves, thus lifting the total official gold reserves to 35,527 tonnes. The central banks from the emerging and developing economies have accounted for bulk of these gold purchases.
Along with regular gold buyers like Russia, Turkey and Kazakhstan, many central banks ventured out into gold purchases by the end of the decade. As many as 18 individual central banks had purchased in excess of one tonne of gold in 2019, suggesting that gold purchases have become more diverse. Even countries that have been absent from gold market for several years became notable gold purchasers.
The recent survey carried out among world central banks indicates that gold’s strong performance during crisis times has been cited as the top reason for banks to hold gold and add more to its holdings.