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Gold July 19, 2019 01:30:10 PM

WGC Survey Foresees Continued Robust Central Bank Demand for Gold

Paul Ploumis
ScrapMonster Author
The survey found that nearly 75% of the central banks buy gold in the form of Good Delivery bars.

WGC Survey Foresees Continued Robust Central Bank Demand for Gold

SEATTLE (Scrap Monster): A recent survey conducted among emerging market and developing economy central banks points to continued robust demand for gold in near-to-short term. 11% of the surveyed banks responded that they plan to add to their gold reserves over the next one-year period.

The survey found that nearly 75% of the central banks buy gold in the form of Good Delivery bars. Also, 9% of the banks buy kilo bars. 53% of the central banks surveyed stated that they purchase gold in the global OTC market.

56% of the central banks reported The Bank of England as the custodian of their gold holdings. Nearly 25% mentioned domestic storage and the Bank of International Settlements as custodians. No central banks reported change in storage arrangement over the past one year. Also none of them plans to make changes in the next twelve months.

ALSO READ: Russia's Central Bank Boosted Gold Purchases by 6 Tonnes in May

Majority of central banks expect the proportion of total reserves denominated in US dollar to maintain similar levels over the next five years. Nearly one-third expect a decline. 50% of the central banks surveyed expect the proportion of total reserves denominated in Euros to remain at more or less the same levels in five years from now. However, 25% expect this to rise, whereas 15% expects a fall.

According to the survey, seven out of ten central banks mentioned increase in total reserves when matched with the level before five years. Furthermore, 54% of the central banks expect global central bank gold reserves to increase over the next year. Meantime, 38% expect global gold reserves to remain unchanged.

The survey was carried out by World Gold Council (WGC) in partnership with YouGov-a public opinion and data company.

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